Highlights in the Cryptocurrency Industry
Updates on policy, institutional involvement, and market trends
Tonight at 21:10, the Fed will announce its new policy stance. The key points that we need to pay attention to are:
- Whether the inflation target will be adjusted.
- Whether other loose stances will be discussed.
- Whether yield curve control will be discussed.
The July meeting minutes did not mention the average inflation target or yield curve control, so it is expected that Powell will not make significant differences in the explanation during these meetings. Maybe the real changes will have to wait until the September Fed monetary policy meeting. Under such expectations, gold and silver rebounded sharply yesterday, the US dollar index fell, and Bitcoin rose. However, from today's trend, the sustainability is limited, showing the market's uncertainty about the meeting as a whole. Therefore, as mature investors, we should continue to reduce positions, wait for clear signals from the market to appear, and prevent black swan events from causing risks to our capital.
Federal Reserve Building
The Coinbase executive responsible for institutional trading said that they have seen many new institutional clients enter the cryptocurrency industry, bringing huge liquidity to the cryptocurrency market. This executive used data from the US cryptocurrency industry to tell us that institutions are still optimistic and entering this industry. At present, we need more patience. For investors who don't like short-term investments, locking in Bitcoin may be the best choice.
Fidelity's subsidiary launched a Bitcoin fund with a minimum investment of $100,000, providing more investors with channels to buy Bitcoin. This is a long-term benefit for the industry.
P2P cryptocurrency trading volume in India continues to grow, from a single week of $1.52 million in January 2020 to $4.4 million in August. The growth potential is still worth looking forward to.
The SEC has expanded the definition of accredited investors. The expansion of the scope of accredited investors by the US Securities and Exchange Commission will allow more ordinary people to enter the market through formal channels, which is also a long-term benefit for the industry. Capitalism is really scary, allowing the rich to enter and play first, and then letting ordinary people enter and take over.
Tether printed another $200 million USDT early in the morning. Whether it is lock mining or USDT contracts, the demand for U continues to increase. After the emergence of Defi, printing money does not mean pulling up the market, it is just the real demand of the industry.
The premium of Bitcoin futures has gradually declined recently, but CME's premium rate is still much higher than other contract platforms. The rate is 1.59% for CME and 0.89% for other platforms, which means that institutional investors are more optimistic about future market trends than retail investors. However, the recent decline in futures premiums also represents the weakening of market bullish sentiment, which is not conducive to sustained upward momentum in the short term.
After testing the low and rebounding yesterday, Bitcoin still has some short-term rebounding momentum. Today's overall callback volume is not large, and the market is expected to see a range of 11,600-11,800. The trend remains the same as before, which is the first wave of the upward rebound cycle. Controlling risks on the high side is the main priority.
Crypto Market Analysis
Attention should be paid to Powell's evening speech, as the recent correlation between Bitcoin and gold has been significant.
Currently in a short-term rebound cycle, it won't drop quickly after obtaining support. Consider reducing holdings after the rebound, overall it is in a high-level box oscillation.
Huobi Token (HT)
Trend is not very strong, around 4.8 is support, expected to be mainly oscillating.
Today's rebound volume is not large, it is a strong coin among mainstream coins, watch it for a day.
Has not fallen below support for two consecutive days, and short-term linked rebounds are dominant with limited heights.
Staking pool rewards are higher than expected, but it has not brought continuous gains to the coin price, indicating that investors locking their coins have not continued to increase, which is not conducive to the rebound of the coin price.
Rebound volume is insufficient, mainly oscillating.
Rebound momentum is insufficient, and the trend after oscillation is still declining.
Don't just rush in because it's currently popular. Some believe it's not worth the money. Eventually, someone has to buy the bubbles, and risk and return always coexist. In addition, on August 31, 6.95 million Polkadot will be unlocked, on September 9th 10.05 million, on September 16th 9.66 million, and on September 22nd 6.44 million. As for what happens next, everyone can decide for themselves. Mainstream coins are relatively plain, perhaps when the money-sucking giant DOT trend ends, other currencies can begin their own performances.
Disclaimer: The article only represents the author's personal opinions and does not represent BLOCK's viewpoint or position. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and BLOCK will not be held responsible for any direct or indirect losses incurred by investors' transactions.