Fundamentals and expected events: week 30

Crypto markets: Positive sentiment in the cryptocurrency market plunged after Tesla sold 75% of its reserves held in Bitcoin, equivalent to about $936 million. The major cryptocurrency has fallen below $23,000 and Ethereum below $1,500. Minecraft developers Mojang Studios banned NFT token integrations in their wildly popular game. The U.S. Securities and Exchange Commission (SEC) has listed nine crypto assets as securities as part of the insider trading case against former Coinbase manager. SkyBridge Capital has suspended withdrawals from its crypto-exposed Legion Strategies fund.

Stock and commodity markets: Global stock markets have plunged this year on fears of an impending recession, helped by hawkish central banks trying to tame runaway inflation. Even so, equity funds have net inflows of $181 billion this year, while bond funds have been hit by outflows of $206 billion. US stock markets entered the new week without a clear direction. Rising interest rates in the US, the world’s key economy, are putting pressure on the gold price. It is already trading at its lowest price in more than a year. The price of US WTI crude oil rose by 2.2%.

Fundaments and important events: There will be many important macroeconomic and corporate news this week. At the corporate level, reports from Amazon, Google, Apple, Microsoft as well as Intel will be among the most watched. On Thursday the first estimate of the US economy’s 2Q growth will be released.Confidence in the Czech and German economies fell for the second month in a row in July. The aggregate indicator of economic sentiment fell from 6.3 to 3.5 points. Both business and consumer confidence continued to decline. The Minister of Industry and Trade Jozef Sikela has called an extraordinary Energy Council, which will take place tomorrow in Brussels. The meeting will be attended by the Ukrainian Minister for Energy, Herman Galushchenko. This week, the US Federal Reserve will hold a high-profile meeting, the main outcome of which will be the way forward and the strategy to fight ever-rising inflation. Inflation rose to 9.1% year-on-year in June from 8.6% in May, reaching its highest level in 40 years.

Would you like to gain a better understanding of the world of cryptocurrencies? Try our series of educational articles for newbies. Did you find a term in the text that you don’t understand? You can find all the most commonly used terms in our glossary. 

Cryptomarkets and marketcap: week 30

BTC / USD

ETH / USD

The situation is different for ETH than for BTC. And the PoS transition plays a big role in this. ETH is forming a bullish divergence on the 4H TF and massively resetting the RSI with the simultaneous golden cross that happened on 7/19. And even corrective moves to 50EMA are without touching this EMA line. The price distance from the key price TL that we cannot fall below is less than $200 (around the $1350 price). It looks like ETH could be an important link for the entire market. Any major drop in ETH, especially below $1350, could trigger a selloff.  A break of the key RSI TL will trigger another move up.

Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.