Cryptocurrency Market Cautious After Fed’s Powell Says US Inflation Remains ‘Extremely High’

Cryptocurrency Market Cautious After Fed's Powell Says US Inflation Remains 'Extremely High'

Bitcoin, ether and other top 10 volatile currencies were stable Monday morning in Asia. Cryptocurrency investor sentiment remains cautious, although analysts from JPMorgan Chase & Co. They report that the downward momentum of prices in the market has slowed. The Forkast 500 NFT Index rose after Donald Trump’s arrest led to an increase in sales of the former US president’s token collection of NFTs. US stock futures rose despite US Federal Reserve Chairman Jerome Powell using his highly anticipated Jackson Hole speech on Friday to double down on the possibility that interest rates will stay higher for longer.

JPMorgan finds a “limited downside” to cryptocurrencies

Bitcoin posted a slight gain of 0.08% over the past 24 hours to reach $26,050.62 as of 06:40 AM in Hong Kong. The token traded down 0.59% for the week, according to CoinMarketCap data. The world’s leading cryptocurrency was hovering around $26,000 over the weekend, dropping briefly below the key support level several times.

“the Cryptocurrency fear and greed index “It’s been in ‘fear’ territory for the last week,” Alex Kuptsikevich, senior market analyst at London-based online brokerage FxPro, said in an emailed statement.

“By this measure, the market is far from oversold and not yet attractive to bargain hunters,” he said, adding that Bitcoin has entered another prolonged period of horizontal price action.

Ethereum rose 0.35% to $1,653.79, while losing 1.73% in the past seven days. Along with most other cryptocurrencies, including Bitcoin, it has recorded a significant rise losses August 18 as macroeconomic factors – incl suspicion on the Fed’s upcoming interest rate moves, Consumption The Chinese yuan and the bankruptcy of the Chinese real estate giant Evergrande – affected the market.

“Ethereum is consolidating around $1,650, which is an important pivot level for the past 12 months,” Koptsiewicz said. He warned that failure to maintain this level could lead the price to $1,200 “within a week or two.”

On the other hand, a a report By analysts at JPMorgan Chase & Co. Expect “limited downside” for the cryptocurrency market as losses slow. They found a decrease in the number of bitcoin-related futures contracts on exchanges that have not yet settled — a sign that the bearish price movement is losing momentum.

The other top ten stablecoin cryptocurrencies were stable to mixed.

Solana led the gains, rising 1.99% to $20.73, but still losing 4.89% for the week. The drop came despite news last week that Solana Pay — a free-to-use payment protocol built on the Solana blockchain — has partnered with Canada-based e-commerce platform Shopify to allow USDC stablecoin payments for online shopping without broker fees.

The total market capitalization of cryptocurrencies increased by 0.18% to $1.05 trillion. Trading volume increased by 6.88% to reach $16.28 billion.

Trump’s image boosts NFT sales for the former US president

The indices are proxy measures of the performance of the global NFT market. It is managed by cryptoslamwhich is a sister company of Forkast.News under the Forkast.Labs umbrella.

The main Forkast 500 NFT Index is up 0.07% over the past 24 hours to 2,244.41 as of 11:45 am in Hong Kong, but is down 3.71% for the week. Forkast Ethereum, Polygon, and Cardano indices declined, while Solana rose.

Total NFT trading volume increased by 0.33% over the past 24 hours to reach $10.02 million. Trading volume on Ethereum and Polygon decreased while Solana, Mythos and BNB posted increases, according to data from CryptoSlam.

Meanwhile, the public release of a police photo of Donald Trump on Thursday caused prices to skyrocket in non-fungible tokens (NFTs) bearing the signatures of former US presidents. The average price of Trump Digital Trading Cards in the NFT market open sea It jumped 70% to 0.1913 ETH ($358) on Sunday from 0.1118 ETH on Wednesday.

This photo is part of the criminal case brought by the Georgia state government against Trump for election interference at the end of the 2020 presidential race. The photo is the first ever photo taken of a former president in US history. Trump tweeted the photo on his official X account on Friday. This was his first tweet since returning to X (formerly Twitter) after the ban in January 2021.

The tweet had 250.4 million views and 1.6 million likes as of Monday afternoon in Asia.

“The more Trump is in the news, the more it sells,” said Yehuda Beecher, NFT strategist at Forkast Labs.

“To some extent, I think these are historical events. You have one of the most polarizing personalities in the history of the world, and I think most people don’t realize that or have forgotten, but there is a whole host of prize NFTs out there,” Beecher added.

Trump’s NFT suite, which launched last December, includes passes for perks including a Zoom conference call with the former president.

“I bought Zoom calls,” Beecher said. “When will you have a chance to talk to a boss for 30 dollars?”

In terms of blocks, NFTs based on the Mythos chain from blockchain gaming platform DMarket led the trading volume, rising 3.58% to $815,301. The Ethereum-based NFT, Bored Ape Yacht Club, took second place despite dropping 45.50% to $666,010.

The digital deck of the sci-fi trading card game Cross The Ages from ImmutableX took third place with a trading volume of $472,187.

Powell indicates that interest rates may remain higher for a while

Getty Images 1576897070

Photo of Federal Reserve Chairman Jerome Powell: Getty Images

US stock futures were trading higher as of 11:55 am in Hong Kong, adding to gains made during Friday’s regular trading session. China’s Shanghai Composite Index, Hong Kong’s Hang Seng Index, South Korea’s Kospi Index, and Japan’s Nikkei Index also posted gains.

This came after the introductory speech given by Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Symposium last Friday. Powell said the US economy had become more resilient, but made it clear that inflation was still “very high”. He added that the central bank could still raise interest rates if needed, but would “move with caution” before making any decision.

“It’s confirmation that at best the Fed will move very slowly and cautiously,” said Michael Green, chief investment strategist at Simplify Asset Management. He said for BBC News.

The Fed raised the interest rate to between 5.25% and 5.50% in July, the highest level in 22 years. CME FedWatch tool pridect There is a 19.5% chance of a 25 basis point rate hike at the next Fed meeting in September.

Meanwhile, Chinese stocks rose the following weekend reports Beijing is preparing new measures to boost capital markets. Proposed measures include a plan to cut stamp duty – a tax levied on documents required to legally record transactions – on stock trading by a maximum of 50%. If the cut is implemented, it will be the first of its kind since 2008.

“Such a policy is likely to give a short-term boost to the market, but it won’t have much impact in the long term,” Xie Chen, fund manager at Shanghai Jianwen Investment Management, told Reuters.

Macroeconomic data for July, including production figures and retail sales, showed a slowdown in post-coronavirus recovery efforts in China, as some analysts had expected recession.

(Updates to add stock section)

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