Tag: Market
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Bitcoin sees $23.3K amid market reaction to US jobs report
- Bitcoin price fell slightly to retest support near $23,250 on Friday.
- The top cryptocurrency’s price action mirrored early trades on Wall Street as the market reacted to US economic data.
- The US added 517,000 jobs, against an estimated 188,000 and unemployment fell to 53-year low of 3.4%.
Bitcoin responded to Friday’s US jobs report by swinging nearly 2% lower to trade around $23,250 early morning. As CoinJournal reported, Bitcoin fell against the US dollar after it briefly touched highs of $24,086.
Across crypto, Ethereum had slipped towards $1,600 with about 1.4% in losses.
Bitcoin and stocks react to US jobs data
As noted, early action across cryptocurrency prices mirrored the opening on Wall Street, where the three major US indices swung lower after the January jobs report showed a higher-than-expected rise in nonfarm payroll.
Data released by the US Bureau of Labor Statistics showed the labour market added 517,000 jobs in the first month of 2023. The statistic indicated an unexpected growth, exceeding the 188,000 estimated by economists.
The US economy added far more jobs in January than the 223,000 managed in December, with the unemployment rate falling to its lowest level in over half a century. Per the data, unemployment is now down to 3.4%, the lowest level for the US since 1969. Economists expected the unemployment rate at 3.5%
The market’s reaction to the economic data, together with sentiment around disappointing earnings results from across Big Tech, fueled an early sell-off on Wall Street. It’s also likely down to nervousness over what this means for the Fed’s inflation outlook.
The S&P 500 fell nearly 1%, while the Dow Jones Industrial Average declined by 100 points before regaining some footing. The Nasdaq Composite, impacted by a decline across tech stocks, shed more than 1.3% in early trading.
The major indices are trying to recoup the early losses, as is Bitcoin that is trading near $23,500 as of 10.25 am ET. If bulls regain the upside momentum, BTC is likely to retest its intraday highs just above $24,000.
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The market saw over 340,000 NFT buyers as crypto rallied
- NFT buyers last week rose to 348,426, about 41% up on the previuos week.
- NFT sales volume also rose, with more than $244 million in sales last week representing a 5.4% increase.
- Sales (USD) volume and buyers increased in tandem with Bitcoin price hitting levels above $23,000.
Non-fungible token (NFT) data from last week shows the market attracted 348,426 buyers, roughly 41% higher than the previous week.
According to NFT data platform CryptoSlam, the buyer count of nearly 350,000 corresponds to a 40.99% this past week.
As of Tuesday morning, 24 January, 2023, there had been over 419,000 unique buyers year-to-date. The uptick coincides with a rally across crypto, with volatility pushing Bitcoin price above $23,000 and Ethereum above $1,600 for the first time since early November 2022.
Indeed, as data from CoinGecko shows, Bitcoin’s price is currently up more than 7% this past week. Over the last two weeks, the flagship cryptocurrency’s value has soared 35%.
Among top blockchains with most buyers on the 7-day timeframe, Ethereum leads with 146,380 (36% increase) and Solana is second with over 89,800 NFT buyers at 73% increase this past week. Cardano is third while BNB Chain ranks 7th but with a 74% spike in buyer participation.
NFT sales jumped 5% last week
At the same time, the global NFT sales volume in the past seven days indicates a 5.4% increase, with more than $244 million worth of NFTs traded in that time.
The most sales volume was on Ethereum at almost $200 million, while Solana, Cardano, Immutable X and Polygon complete the top five as of 24 January.
Among the top 10, the WAX blockchain saw the most increase in NFT sales with 82%. Meanwhile, Solana and BNB Chain recorded the largest decline over the past week as NFT sales on these blockchains fell 20% and 33% respectively.
NFTs sales stood at $623,439,866 for the month, data from CryptoSlam showed ( as of 24 January 2023), with total NFT transactions year-to-date at nearly 4.2 million (it was 4.7 million for December 2022).
While there has been a slight decline in the metric compared to the previous week, the statistics suggest the NFTs market has seen trading volume and buyer participation swing alongside movements in the broader crypto market.
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Bitcoin’s recovery will depend on a lot of macro-activities affecting the market, says Dan Ashmore
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Coinjournal’s Dan Ashmore says numerous factors, including inflation and rate hikes, have affected the prices of most cryptocurrencies.
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He told CNBC that Bitcoin’s recovery would depend on numerous macro events affecting the market.
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Bitcoin and the broader crypto market have lost more than 65% of their value since the all-time high of November 2021.
Bitcoin’s recovery will not happen overnight
Dan Ashmore, a cryptocurrency analyst at Coinjournal, told CNBC in a recent interview that the price recovery of cryptocurrencies will not happen overnight. When commenting about the price collapse last year, Ashmore said;
“Entering 2022, we were at the tail-end of one of the longest and most explosive Bull Runs in recent memory. And then the world is gripped by this inflation crisis post-pandemic. We also experienced one of the swiftest rate hike cycles in recent memories. That sucked the liquidity out of all these risky assets. It is not overly surprising that we have seen this massive pullback.”
The macro climate will play a role in market recovery
At press time, the price of Bitcoin stands at $21,163, down by more than 60% from the all-time high. While commenting on the possibility of price recovery, Ashmore said the macro climate would play a huge role in that regard. He said;
“In the last month or so, we have seen slightly more positive readings. It still has a long way to go, but it is brighter than it looked a month or two ago. We still have a long way to go before we get back to that $69,000 all-time high. This is not going to be an overnight process.”
He added that the rise depends on a whole range of variables in the macro climate going our way. Furthermore, the avoidance of incidents such as the LUNA, FTX, and Celsius crashes could help boost the market in the long term.
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Is PancakeSwap (CAKE/USD) bullish market over?
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PancakeSwap was bullish up to November, doubling in price
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PancakeSwap token has been weighed by the risk contingencies of the FTX sage
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The cryptocurrency remains on a downtrend and risks a lower low
It seems that PancakeSwap (CAKE/USD) will have to end 2022 on a low note. CAKE was among a handful of cryptocurrencies that looked strong in the face of a bear market. However, it couldn’t last beyond November. The aftermath of the FTX collapse has taken a toll on the cryptocurrency. Why has this so yet tokens of decentralised exchange or DEX surged post-FTX saga?
The decline in CAKE happens potentially due to its connection with Binance. The cryptocurrency is based on the Binance Smart Chain. Thus, the confidence crisis facing centralised exchanges, including Binance, may have infiltrated PancakeSwap. It does not necessarily mean that is the case, though, as the bear market is also ravaging crypto markets.
With CAKE touching a crucial resistance at $5.0 in early November, investors could have exited positions. That, of course, was inspired by the FTX collapse that sent most crypto tokens tumbling. Investors would not have risked the profits they had made since CAKE had already doubled in value since the June lows. Based on these, CAKE’s bullish market is over, at least in the meantime.
CAKE’s technical outlook is bearish as price retests resistance
A technical outlook shows CAKE retesting a resistance at $3.5. The price has stalled since touching the level, suggesting a possibility of a correction to the downside.
The MACD indicator is very bearish for cryptocurrency. The RSI reading has slightly improved since touching oversold conditions as the CAKE price fell to $3.1. The reading remains below the midpoint, indicating that bears are in control.
What is the likely next price of CAKE?
CAKE price will stay bearish unless bulls recover above the $3.5 level. The next potential price level for the cryptocurrency lies at $2.8 and $2.6. Investors should keep off until the bearish movement subsides and should buy CAKE on a bullish reversal confirmation.
Where to buy CAKE
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Swapzone
Swapzone is a crypto exchange aggregator that operates as a gateway between the cryptocurrency community and exchange services. Swapzone aims to provide a convenient interface, safe user flow, and crystal-clear data for users to find the best exchange rates among the whole cryptocurrency market.
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Learn about OKT, a Cosmos-based altcoin now defying a bear market
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OKT token rose by double digits last week
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The cryptocurrency has been boosted by new partnerships
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OKT is correcting but remains on an uptrend
OKT, the cryptocurrency native to the OKX Chain, made headlines last week. The cryptocurrency rose by double digits to end the week at $27 after trading at just $17 seven days earlier. OKT has since cooled and traded at $22 as of press time. A spot technical check shows that the token has been on an uptrend for more than a month. What has been boosting the price?
OKX is a Cosmos IBC-linked blockchain. It is EVM-compatible and focuses on true interoperability for high performance. The blockchain dubs itself the next-gen platform for decentralised applications. OKX Chain’s Web3 wallet allows users to manage their portfolio of NFTs and tokens.
OKT’s gains come on the back of positive cryptocurrency news of the OKX Chain. The blockchain announced partnerships with social gaming platform Candy Club, DEX network Lovely Swap, and meme asset Chihuahua Chain. The other firm in the latest wave of collaborations was market analytics firm Nansen. The collaborations increase the utility of OKT since the cryptocurrency will be employed in a number of related use cases. Investors have been taking note and buying the little-known token.
OKT corrects after meeting resistance at $27
A technical outlook shows OKT on a clear uptrend but currently correcting. The moving averages are bullish for the cryptocurrency and provide support. The RSI hit the overbought levels but shows a correction underway. The reading is still above the midpoint.
Will OKT continue rising?
The future price action for OKT will depend on how the key collaborations will continue to drive it. It should be remembered that the broader market sentiment is bearish. So, OKT should be looked at with the bearish sentiment in mind.
For investors looking to buy OKT, the level around $19 should be watched. The formation of bullish signals at the level could attract buyers and push the price higher again.
Where to buy OKT
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Crypto market overview November 2022
- Cryptocurrency prices have declined significantly in 2022, with crypto assets tracking the performance of stocks such the Nasdaq 100.
- An overview of three top cryptocurrencies in Bitcoin, Ethereum and Ripple highlights the opportunities and risks that abound.
- Investors seeking to trade on contracts for differences, CFDs, for crypto need to do due diligence and understand how the contracts work.
Crypto has tracked high-risk assets like the Nasdaq 100 for much of 2022, crumbling as a result of the high inflation and high interest rates prevalent in the financial markets.
Bitcoin, the world’s largest digital coin, failed to get past $20,000 for most of September and October. However, amid multiple price predictions BTC managed to rise late that month after some modest indications that the US Federal Reserve was ready to ease policy.
Bitcoin price shot up 6.5% to $20,700 on October 29, and Ether followed by 19%. In context, the two largest crypto powers had suffered losses five of the last six months. Perhaps it wasn’t one single factor driving it, but rather “a more favorable backdrop for risky assets and short liquidations,” suggested NYDIG’s Greg Cipolaro.
One of the drivers for the rally may have been Dogecoin’s massive 40% surge that month, as crypto traders expected Elon Musk’s takeover of Twitter to give him a platform to promote the dog-themed coin.
One notable aspect of the crypto upswing was the fact that it happened at the same time as major tech stocks like Meta Platforms and Amazon.com were in the red. “Digital asset markets have shown early signs of tech decoupling,” Fundstrat’s Walter Teng announced.
Below are 3 top cryptocurrencies that we have used to outline and distinguish the above-mentioned “signs”, and crypto performance in November. Read on to find what else you can learn about trading cryptocurrency CFDs.
Bitcoin
In the second week of November, Binance CEO Changpeng Zhao said his company was on track to acquire FTX.com – the well-known crypto exchange co-founded by Sam Bankman-Fried – after the exchange lost liquidity following Zhao’s own sale of 530 million dollars from its FTX holdings.
Crypto trust was hit by the demise of FTX, whose native FTX token FTT, lost 75% of its value in a single day on November 9. SOL (the token of the Solana blockchain) reacted dramatically (because Solana is connected to FTX), dropping 36% on that day and bringing the total loss for the year to 90%. Bitcoin was 7.7% in the red, after an 11% loss the day before, which kept Bitcoin from breaking above $17,430.
The sentiment was memorable for Modular Asset Management’s Dan Liebau, who said that since 2016, “few periods have tested [the crypto industry’s] market infrastructure and participants as much as the past 24 hours.”
Ether
Has ETH been able to maintain momentum after its monumental September merge? Not according to some analysts such as BeQuant’s Martha Reyes who said in mid-September, “Now that the Merge excitement is over, we don’t have a catalyst for Ethereum any time soon“.
Ether lost 3.8% that day to hit $1,475 after dropping 6% the day before. Excitement over the upcoming Merge into a proof-of-stake system of validation, which would reduce the blockchain’s environmental impact and make it more efficient, had kept Ether afloat since mid-June.
The Merge itself was “certainly a success,” in the words of Ethereum developer Preston Van Loon. “What we’ll see over time is whether the stats hold up.”
A month later, Ether rallied 10.25% in just 24 hours. Internet lawyer Andrew Rossow thought it was due to a “combination of traders capitalizing” and “the success we’re seeing with some of the NFT projects thriving in the current bear market.”
According to Brett Sifling of Gerber Kawasaki Wealth & Investment Management, it was an overflow from the stock market rally. It will certainly be interesting to see how ETH prices will perform in the coming months for those trading cryptocurrencies in the form of CFDs.
Ripple
On September 19, traders braced themselves for higher interest rates on both sides of the Atlantic. This would mean that the cost of borrowing goes up, draining the liquidity needed in the crypto market. Bitcoin and Ether continued their losing streak, dropping 7.4% and 6.6% respectively, but XRP – the token created by Ripple Labs Inc. – fell as much as 13.5%.
A trigger may have been the news that the Securities and Exchange Commission (SEC) wanted an immediate ruling in the lawsuit they were pursuing against Ripple for its “reckless” conduct in failing to register XRP as a security. Also in September, Ripple filed a motion to dismiss the lawsuit, based on their position that XRP is ineligible as a security.
In the second week of October, Ripple CEO Brad Garlinghouse said the case would be resolved by the first half of 2023. The issue, he said, was “about the whole industry,” not just the world’s sixth-largest crypto.
In summary
When trading cryptocurrencies in the form of CFDs, it is always a good idea to understand the prevailing macro environment. For instance, what was Fed Chair Jerome Powell’s tone the last time he spoke? What did the latest inflation data tell us? And what recent events are shaping crypto sentiment?
Answering these questions and listening to the popular opinion of reputable analysts can help those trading cryptocurrency CFDs make more informed decisions.
