Kabul bombing, hawkish talk tanks most crypto markets; Solana keeps shining
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Cryptos have fallen mostly across the board this morning following a deadly suicide attack in Afghanistan and ahead of a key US Federal Bank meeting tonight.
The overall crypto market was down 3.1 per cent to US$2.02 trillion, with Bitcoin also down 3.1 per cent, to US$47,300. Ethereum had fallen 2.9 per cent to US$3,120.
“I think it’s to do with the shift in risk sentiment overnight,” Sydney-based City Index analyst Tony Sycamore told Stockhead.
“The bombing in Kabul, the more hawkish than expected Bank of Korea decision to lift rates, the more hawkish Fed Speak overnight has created some risk aversion. Crypto as a risk asset has fallen in line with other risk markets. And of course some nerves ahead of Jackson Hole this evening also contributing.”
US Federal Reserve chairman Jerome Powell is expected to disclose his thoughts on the American economy and, potentially, how the US central bank might taper its money-creation program known as quantitative easing in his speech. It will begin at midnight AEST.
Other risk assets were down as well, with stock markets around the world losing ground. Gold was up 0.4 per cent to US$1,798.
Crypto analyst Bitcoin Charts posted that he wasn’t that bullish anymore, although there was still hope as long as BTC was trading above its 200-day moving average (currently a bit below US$46,000).
“This price action just looks and feels so eerily similar to what we were seeing at the Bitcoin 65k top,” he wrote.
Among top 100 coins, Fantom was the biggest loser, declining 14.0 per cent to US43.8c. Audius, NEAR Protocol, Tezos, Zcash and KuCoin Token were all down by 11 to 14 per cent as well.
But Solana kept the pump alive, hitting a new all-time high of US$83.04 this morning. At lunchtime it was trading at US$82.73, up 14 per cent from 24 hours ago, the biggest gains of any top 100 coin. (Celo and Terra were the only others much higher).
Outside the top 100, Avalanche-based Sushi fork Trader Joe yesterday afternoon hit a new all-time high, as had virtual world token Wilder World, Gala and Yield Guild Games.