Crypto roundup: Bitcoin and altcoins appear limp ahead of midweek US Fed decision
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“Orange pilled”? Maybe Bitcoin needs a blue one at the moment. After closing Sunday with a green weekly candle, albeit a pretty unimpressive one, Bitcoin isn’t exactly powering into the new week.
In fact, it’s looking positively flaccid at the time of writing, drooping back down towards the lower end of US$47k.
Depending on which timeframe they’re looking at, chartists may be spotting lower highs and lower lows here and there, but fundamentally there are some clear macro forces at play this week.
And those notably involve decision makers at some of the world’s biggest central banks – including the Bank of England, the European Central Bank, Bank of Japan and, of course, the US Federal Reserve – aka, the “Fed”.
Would not be a surprise if this market bottoms on Wednesday, on the day of the FED meeting.
— Michaël van de Poppe (@CryptoMichNL) December 13, 2021
On Wall Street, the S&P 500 index opened with a dip (it was -0.8% on the 24-hour timeframe just now), and the crypto market, which is most certainly still correlated, has followed suit.
Investors in these markets are showing nerves ahead of a monetary policy decision set to be announced by the Fed midweek. The expectation is that Jerome Powell and mates will make a move to wind down the US government’s US$120bn-per-month bond-buying program and raise interest rates to tackle rising inflation.
Whether this will rock the stock market, and consequently crypto, for very long remains to be seen. But even if deflationary forces kick into gear next year, Bitcoin and crypto could still thrive in that environment, according to Bloomberg’s Mike McGlone.
So, in other words, all is not necessarily lost for the crypto bull market whatever spills from the lips of the world’s central bankers. But… buckle up and be prepared for an even bumpier ride as we close out the year.
At the time of writing, the entire crypto market cap has taken a 24-hour, 5.6 per cent hit and is losing its grip on the US$2.25 trillion mark.
It’s certainly a bloody-looking market-cap list for the most part right now. Market leaders Bitcoin (BTC) and Ethereum (ETH) are both down by about 5-6 per cent, with much of what’s below them tending to bleed out a little heavier.
For the brave dip-buyers among us, or those dollar-cost-averaging in, let’s find some potential opportunities (not financial advice, of course, as it could easily all head lower).
Some good projects in the top 100 taking biggish 24-hour hits include: Polygon (MATIC) -12%; Algorand (ALGO) -11%; Near Protocol (NEAR) -13%; Fantom (FTM) -10%; The Graph (GRT) -11%; and THORChain (RUNE) -11%.
Further down the list, we can see a few promising metaverse projects also pulling back, including Vulcan Forged (PYR) -28%; Metahero (HERO) -21%; Wilder World (WILD) -17%; and RMRK (RMRK) -14%.
The Greco-Roman-themed Vulcan Forged metaverse/gaming project has had a particularly bad 24 hours, it turns out…
148 wallets holding PYR have been compromised. Over 4.5m PYR has been been stolen.
While we will replace the PYR taken, our first steps are understanding what’s happened.
No words can do much right now, we know that. We’ll keep updated.
— Vulcan Forged (@VulcanForged) December 13, 2021
They seem to be handling it as well as they possibly can, however…
A video message from CEO Jamie Thomson on today’s hack. pic.twitter.com/ivW5EjVrhm
— Vulcan Forged (@VulcanForged) December 13, 2021
Have we got any outliers showing surprising strength? Yup, here’s one: Sushi (SUSHI), with a solid, 12 per cent gain. This can be put down to the fact Daniele Sestagalli, a top developer in the Avalanche ecosystem, has expressed interest in bringing Sushi into his DeFi fold.
It’s a much-needed boost for the multichain Sushi DeFi protocol, which has been experiencing in-fighting woes over the past month or so, resulting in the departure of some of its own top developer talent.
Sushi jumps 10% after top Avalanche developer, Daniele Sestagalli, proposed making the platform a part of the multi-billion Abracadabra and Wonderland ecosystem.
— CoinDesk (@CoinDesk) December 13, 2021
Looking at Bitcoin and the entire crypto market, though, let’s find some perspective from some of the most respected, go-to analysts on Crypto Twitter.
Rekt Capital, for instance, isn’t too alarmed by today’s dippage, citing “macro consolidation” as an ongoing trend for Bitcoin at present…
Whatever #BTC price moves take place between $44700 and ~$52300 should be considered as macro consolidation
— Rekt Capital (@rektcapital) December 13, 2021
Dr. Jeff Ross is also zooming out. Although, let’s perhaps hope Bitcoin’s not looking to retest that 48-month support line any time soon…
What I'm watching…
At $47,235, #bitcoin continues to find support at or near its 12-month moving average (MA).
Long-term trend remains decidedly bullish.
12-month MA: $47,114
48-month MA: $18,471 pic.twitter.com/708amOuLlS
— Dr. Jeff Ross (Pleb counselor) (@VailshireCap) December 13, 2021
Another trader who seems to have hit prominence on Crypto Twitter just lately is “Yurii”. And maybe that’s because the crypto crowd loves a bullish analyst…
— Yurii 🖍🤑✏️ (@CryptoYurii) December 13, 2021
Meanwhile, here’s a timely reminder from Will Clemente – one of the youngest, and smartest data analysts you’ll find in the crypto space…
If your mood is fluctuating with the price you’re either not being objective enough or have too much invested
— Will Clemente (@WClementeIII) December 13, 2021
Lastly, Bitcoin Archive has all you hardcore HODLers covered…
HODL your ground!#Bitcoin
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) December 13, 2021