Yahoo Finanza 5 Things to Know in Crypto Today
Key Points
A downbeat tone to macro risk appetite/a continued USD surge is exerting further pressure on crypto on Tuesday.
Bitcoin dipped back under $20,000 and is probing a key support trendline.
Ethereum broke below a key support trendline, opening the door for a near-term test of $1,000.
Crypto Selling Pressure Spills Over into Tuesday as USD Continues Historic Rally
After a downbeat session on Monday, selling pressure in cryptocurrency markets has spilled over into Tuesday trade. A risk-off feel to global macro trade that is pushing bond yields and global equity markets lower as investors fret about the usual themes of central bank tightening and recession (particularly in Europe amid the ongoing energy crisis there). News of China reimposing lockdown restrictions in several cities as Covid-19 cases rise is further denting the global growth outlook.
The above-noted concerns have sent a closely followed index tracking the strength of the US dollar to multi-decade highs. The Dollar Index (DXY) surged above 108.50 on Tuesday, taking gains since the start of July to above 3.5% and since the start of the year to over 13%. A stronger dollar is typically a negative for USD-denominated commodities and digital assets, as it makes them more expensive for international buyers.
Total cryptocurrency market capitalization was last down about 1.0% on Tuesday near $860 billion. It dropped over 4.0% on Monday from above $900 billion and, in doing so, fell under its 21-Day Moving Average (at $893 billion). Total market cap is now down around 11% or over $100 billion from last Friday’s highs in the $965 billion area.
The world’s largest cryptocurrency Bitcoin was last trading in the $19,750 area, down about 3.6% in the last 24 hours, as per CoinMarketCap. Monday’s fall saw it dip back under its 21DMA just under $20,500. BTC/USD is changing hands over 11% lower versus last Friday’s peaks near $22,500.
For now, Bitcoin’s technical outlook remains positive, though BTC/USD is threatening a break below a key level of support in the form of an upwards trendline linking the mid-June, late-June and early July lows. A break below that would open the door to a run lower towards $19,000 and perhaps a retest of annual lows under $18,000.
In terms of the major altcoin, Ethereum was last down about 6.5% in the last 24 hours, according to CoinMarketCap. Over the same time period, the likes of BNB, XRP, ADA, SOL, DOGE, DOT and SHIB were all down between 3-6%.
Ethereum’s Technical Outlook Deteriorates
The near-term technical outlook for the world’s second-largest cryptocurrency Ethereum took a substantial turn for the worse on Monday. The cryptocurrency had been forming an ascending triangle, which often precedes bullish breakouts.
Some technicians had been predicting a move towards resistance around $1,700 if Ethereum could break above recent highs around $1,280. But Ethereum on Monday broke below the ascending triangle’s support line that has been in play since mid-June.
This opens the door to a near-term drop back to late-June lows around $1,000 and even perhaps a test of sub-$900 annual lows.
Binance Under Scrutiny For AML/Sanction Enforcement Failures
Reuters released two damning reports on Binance, the world’s largest cryptocurrency exchange when it comes to trading volumes, on Monday. In the first, it claimed that Binance had only made “weak” attempts to prevent money laundering. It also claimed that Binance had operated outside the rules that many of its rivals follow.
In response, a spokesperson from Binance told CoinDesk “we have a robust compliance program that incorporates anti-money laundering and global sanctions principles and tools used by financial institutions to detect and address suspicious activity”.
In another report, Reuters accused Binance of having continued to serve customers in Iran until September 2021, despite announcing a ban on Iranian customers in November 2018 after the US imposed sanctions.
GameStop Launches NFT Marketplace
In a boost for the non-fungible token (NFT) space, video-gaming retailer GameStop has launched its NFT marketplace. According to a statement by the company made on Monday, “gamers, creators, collectors and other community members to buy, sell and trade NFTs”.
GameStop’s NFT marketplace has been under construction since 2021. Its launch comes after the company recently released its own digital asset wallet. GameStop rose to fame in the investment community in early 2021 after retail investors engineered a short squeeze in GME shares that cost numerous hedge funds trillions.
Crypto Winter: BitMEX Delays BMEX Token Listing
Cryptocurrency and derivatives exchange BitMEX said on Tuesday that it had decided to delay the listing of its ERC-20 BMEX token due to unfavorable market conditions. BitMEX explained; “although we are ready to list BMEX, the present market conditions are not ideal, and we want to list the token in an environment that gives it the best chance to reward you, its holders”. BitMEX’s BMEX token will allow holders to get discounts on BitMEX trading fees. BitMEX has already airdropped 1.5 million tokens to its exchange users.
This article was originally posted on FX Empire
