The past week has seen a significant sell-off across the markets with Bitcoin (BTC) losing more than 10% of its value. Other cryptocurrencies have been showing even more weakness as Ether (ETH) dropped by 30%. In addition, the commodity and equity markets have also slid as the Nasdaq had a significant red week as well. The next step for the markets right now would be finding a bottom structure. Let’s look at the charts. Crypto market daily performance snapshot. Source: Coin360 Bitcoin seeks CME gap while holding psychological support of $10,000 The daily chart shows that the price of BTC …

The Nasdaq, S&P500 and Dow all corrected sharply on Sep. 3 and opened today with additional downside, suggesting that traders are rushing to the exit. Bitcoin (BTC) and several other major altcoins have also witnessed a strong bout of profit booking that has pulled down the total crypto market capitalization from $394 billion on Sep. 2 to about $339 billion today. Even gold, which is a traditional safe haven asset, has not been spared and lost ground in the past two days. This shows that traders are booking profits in every asset class that has run-up in the past few …

In September’s crypto outlook newsletter, Bloomberg’s analyst Mike McGlone observed that the price of Bitcoin (BTC) could either be heading to the $500,000 mark, or it could fail. McGlone has continued to reiterate that in his view, Bitcoin is set to become digital gold. He emphasized once again how Bitcoin’s limited supply and increasing demand were key adoption indicators, and drew comparisons to the 2017 bull run: “Much of the broad crypto-asset market echoes 2017's excesses, but the foundation is firming due to expanding decentralized exchanges (DEXs) and finance (DeFi). Limited supply vs. increasing demand is the bottom-line for Bitcoin, …

The U.S. stock market continues to hit new all-time highs while gold, which acts as a safe haven asset has retreated from it's all-time highs. This suggests that there sentiment is to own risky assets. Meanwhile, Bitcoin (BTC), which at times behaves as an uncorrelated asset, remains stuck in a range. However, with the U.S. presidential elections approaching, the volatility in all the markets is likely to pick up. If President Donald Trump is re-elected, then there is unlikely to be a huge change in the current economic policies. If Joe Biden wins the election, then economists, traders and corporations …

The U.S. stock market is on track to clock its best August performance since 1984. Meanwhile, Bitcoin (BTC) is attempting a positive close for the month after having declined consecutively in August 2018 and August 2019. However, gold futures and the U.S. dollar index (DXY) have not been in favor, as both could end the month in the red. Berkshire Hathaway disclosed a 5% stake each in five leading Japanese trading companies, and just a few days back, the company announced that it had a stake in a gold mining company. Daily cryptocurrency market performance. Source: Coin360 Max Keiser of …

As the price of Ethereum’s native digital currency, Ether (ETH), has been showing massive strength recently, the path seems to be continuing toward new highs. Ether price ran from $220 to $445 in the previous five weeks, and this is one of the biggest surges for the altcoin in the past 18 months. However, as the rally didn’t provide many opportunities for laggards to hop on the train, is $500 the next target for Ether? Let’s examine the technical setup. Crypto market daily performance. Source: Coin360 Ether flips crucial level for support, fueling bullish momentum As Ether broke through the …

Ripple Labs CEO Brad Garlinghouse believes that the U.S. Federal Reserve’s recent decision to allow inflation to stay above its 2% target objective could debase the dollar further. According to Garlinghouse, this decision is likely to lead “to further diversification of assets which will certainly be good for crypto.” The various stimulus and fiscal measures announced around the world to counter the coronavirus pandemic led economic slowdown are bullish for Bitcoin (BTC). However, Bitcoin’s major bull market cycles show that each successive cycle has been longer than the previous one. Hence, if history were to repeat itself, Bitcoin could consolidate …

In his speech on Aug. 27, U.S. Federal Reserve chairman Jerome Powell said that the central bank will allow inflation to stay above its 2% target level if the figure has been languishing below that level for a long time. Some analysts believe that this could mean no rate hikes for at least five years. In response to the speech, the U.S.dollar index (DXY) resumed its downtrend while gold is trading in the black. This shows that traders believe that the central bank’s change in strategy could debase the dollar further, hence, the demand for gold as a store of …

On Thursday, U.S. Federal Reserve chairman Jerome Powell is expected to deliver an important speech that will highlight a new strategy of targeting “average inflation.” This means that the Fed might allow inflation to overshoot the 2% target temporarily if it has spent a long time below that level. If the Fed adopts this new strategy, it could keep interest rates near zero for five years or more, according to a Bloomberg report. The abundant liquidity is likely to drive asset prices higher across the board and create bubbles that will eventually burst. If this occurs, investors are likely to …

Messari believes that Yearn.Finance's YFI token is one of the least expensive in the DeFi space, according to its price-to-sales multiple. The metric is calculated by dividing a token's market capitalization by its annualized yield. In YFI's case, its capitalization at the time of calculation was $390 million. According to Messari, its annualized sales stood at $21 million. Dividing the two numbers, we get approximately 20x. For reference, the same ratio for CRV, another popular DeFi token, is 1568x, making it 78 times more expensive according to this ratio. DeFi Price-to-sales multiples. Source: Messsari. Messari noted that unlike many of …

The coronavirus pandemic has forced people to change several social behavioral habits. Along with maintaining social distance from one another, people are also averse to using notes, coins or cards as they might transmit COVID-19. A new report from the Bank for International Settlements suggested that social distancing procedures and the “government-to-person payment schemes” have accelerated the efforts towards launching central bank digital currencies (CBDCs). The paper shows that the public interest in CBDCs has exceeded that of Bitcoin (BTC) and Libra in 2020. However, the CBDCs will only be a digital version of the fiat currencies that will be …

This week the S&P 500 made news by notching a new intraday all-time high and recovering 100% of the losses caused by the coronavirus pandemic in mid-March. Despite this, there are signs U.S. stock markets could be overvalued. The Buffett indicator, an analysis tool which divides the Wilshire 5000 Index by the U.S. GDP, currently shows 1.7. This figure is quite near to the dot-com era top at 1.71 which was followed by a strong market correction. However, one major difference between now and the dot-com era is that the current interest rates are at record lows and central banks …