The bullish momentum of cryptocurrencies weakened yesterday after, Jerome Powell communicated that the Fed is still determined to raise interest rates, and that their target level suitable for cooling inflation may prove even higher than the bankers' previous assumptions. Risk assets have received another blow, and expectations of a faster pivot on Wall Street have so far failed to materialize:
- Bitcoin is trading near $20,200, keeping hope alive for a renewed move toward $21,000. Ethereum is holding at $1540. Solana, Cardano, MakerDAO and Decentraland altcoins have lost the most. Cryptocurrencies once again showed a persistent correlation with indices;
- Meta Platforms has joined the NFT trend and will use Polygon's blockchain to enable NFT mining and trading in its apps, along with a set of 'end-to-end' narratives for creating tokens and selling digital collectibles on its Instagram platform. The company made the announcement as part of Creator Week 2022. Meta Platforms currently supports the Ethereum, Polygon, Flow and Solana blockchains. Metadata i.e., among other things, names and descriptions for selected NFT collections, will be taken from the world's largest token marketplace, OpenSea. The company did not provide information on the commissions and royalties that will apply to such transactions;
- Founder of cryptocurrency exchange FTX, Sam Bankman Fried indicated that the reason for Meta Platforms' declines is more due to the fact that the platforms created by the company have grown to such a size that there is little room left for further growth, and hinted that the catalyst for the former Facebook could be a move into the Web 3.0 space, which the blockchain industry is calling the 'new internet';
- One of Bloomberg's leading analysts, Mike McGlone indicated that he remains positive on Bitcoin and Ethereum cryptocurrencies due to the 'deflationary' nature written into their code, which will ultimately show that the law of supply and demand works unconditionally. At the moment, nearly 90% of all Bitcoin is already in circulation, with a target of 21 million with up to 3 million that may have been lost due to holders losing their code. Ethereum's deflatability is still dependent on ETH network activity and transaction fees. According to McGlone, bitcoin may begin to rebound as sentiment in the gold and bond markets improves.
Polygon, D1 interval. The price of Polygon cryptocurrency has risen more than 10% following news of a parnter with Meta Platforms. At the end of October, we can observe the so-called golden cross, i.e. a formation in which the 50-session average crosses the 200-session average from below, which statistically can herald the reversal of a long, downward trend. The last time we observed an inverse price formation, the so-called 'death cross', was around the beginning of January this year, at which time it foreshadowed an impending sell-off. Source: xStation5
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