Bitcoin and Altcoins Rise, But Upcoming Macro Events May Limit Rally
September 21 FOMC decision may prompt traders to reduce risk exposure, limiting recent gains seen in the crypto market .
Market analysis
Gains of 13% in the six days to September 12 brought the total crypto market cap closer to $1.1 trillion, but that was not enough to break the downward trend. As a result, the overall trend over the past 55 days has been bearish, with the last test of support on September 7 at a total market capitalization of $950 billion.
Total Crypto Market Cap, USD . Source: TradingViewAn improvement in traditional markets accompanied the recent 13% rally in the crypto market. The tech-heavy Nasdaq Composite Index has gained 6.2% since Sept. 6 and WTI oil prices have risen 7.8% since Sept. 7. This data reinforces the high correlation to traditional assets and highlights the importance of closely monitoring macroeconomic conditions.
The correlation measure ranges from a negative 1, which means some markets are moving in opposite directions, to a positive 1, which reflects a perfectly symmetrical move. A disparity or lack of relationship between the two assets would be represented by 0.
Nasdaq futures and Bitcoin/USD 50 day correlation . Source: TradingViewAs shown above, the Nasdaq Composite Index and 50-day Bitcoin Correlation currently sit at 0.74, which has been the norm throughout from 2022.
The Fed's September 21 decision will set the toneStock market investors are eagerly awaiting the US Federal Reserve meeting on September 21, when the central bank is expected to raise interest rates again. With the market consensus for a third consecutive rate hike of 0.75 percentage points, investors are looking for signs that the economic tightening is waning.
A report on the US Consumer Price Index, a relevant gauge of inflation, is due on September 13 and on September 15, investors' attention will be glued to US sales data. retail and industrial production in the United States.
Currently, regulatory sentiment remains largely unfavorable, especially after the...
September 21 FOMC decision may prompt traders to reduce risk exposure, limiting recent gains seen in the crypto market .
Market analysis
Gains of 13% in the six days to September 12 brought the total crypto market cap closer to $1.1 trillion, but that was not enough to break the downward trend. As a result, the overall trend over the past 55 days has been bearish, with the last test of support on September 7 at a total market capitalization of $950 billion.
Total Crypto Market Cap, USD . Source: TradingViewAn improvement in traditional markets accompanied the recent 13% rally in the crypto market. The tech-heavy Nasdaq Composite Index has gained 6.2% since Sept. 6 and WTI oil prices have risen 7.8% since Sept. 7. This data reinforces the high correlation to traditional assets and highlights the importance of closely monitoring macroeconomic conditions.
The correlation measure ranges from a negative 1, which means some markets are moving in opposite directions, to a positive 1, which reflects a perfectly symmetrical move. A disparity or lack of relationship between the two assets would be represented by 0.
Nasdaq futures and Bitcoin/USD 50 day correlation . Source: TradingViewAs shown above, the Nasdaq Composite Index and 50-day Bitcoin Correlation currently sit at 0.74, which has been the norm throughout from 2022.
The Fed's September 21 decision will set the toneStock market investors are eagerly awaiting the US Federal Reserve meeting on September 21, when the central bank is expected to raise interest rates again. With the market consensus for a third consecutive rate hike of 0.75 percentage points, investors are looking for signs that the economic tightening is waning.
A report on the US Consumer Price Index, a relevant gauge of inflation, is due on September 13 and on September 15, investors' attention will be glued to US sales data. retail and industrial production in the United States.
Currently, regulatory sentiment remains largely unfavorable, especially after the...
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