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Crypto is ready for sharp move before the weekend? 📌

14:43 30 September 2022

Cryptocurrencies are behaving relatively calmly ahead of the weekend. Bitcoin is holding near $19,400, the price of Ethereum is oscillating around $1,340 per token:

  • Data from the U.S. showing continued high PCE inflation in August supported the dollar and negatively impacted indexes, with Wall Street contracts falling. Bitcoin reacted moderately negatively to the reading. Markets fear entrenched inflation, which in an environment of hawkish banks would cause serious problems for the economy;
  • Citadel fund manager Kenneth Griffin pointed out that the drop in volume in the cryptocurrency market and NFT tokens is a positive sign for the US economy and heralds an ending speculative bubble. According to Griffin, markets inflated cryptocurrencies in the face of central banks' policies during the COVID pandemic, and now the economy will begin to find balance and lost order.
  • Moreover, Griffin stressed that the crash will temporarily stop people from investing capital in cryptocurrencies, instead they will start spending their savings on travel, food or real assets helping the US economy. In the past, Griffin has been known for his negative attitude toward cryptocurrencies, responding, among other things, that he does not engage in cryptocurrency trading because he does not support North Korea's actions, but he noted that young people working at Citadel are much more interested in digital assets;
  • Kazakhstan continues to develop cryptocurrency-friendly projects involving the country's largest banks Halyk Bank and Altyn Bank, as well as Kazakhstan's crypto exchange ATAIX. Kazakhstan has reported thousands of Russian immigrants flocking to the country to shelter from forced mobilization. Halyk Bank has suspended processing of Russian MIR cards amid fears of U.S. sanctions, likely prompting a sizable number of people to adopt cryptocurrencies.
  • Georgia has also taken a similar 'cryptocurrency hub' goal. European sanctions on Russian cryptocurrency accounts that used Western financial infrastructure are also getting louder.  The Bank of Russia has repeatedly stressed that it does not intend to allow Russian crypto exchanges by which Russian citizens are 'condemned' to use only foreign infrastructure;
  • According to as yet unconfirmed information, Eurasian Bank and Intebix have completed the first ever regulated purchase of cryptocurrencies with fiat money. The precedent could prove to be a milestone for cryptocurrency adoption in Kazakhstan and enabled the purchase of digital assets with domestic currency;
  • Despite falling crypto prices, blockchain-based games increased the number of active users in September, with NFT sales (including God's Unchained, Alien Worlds) also increasing, according to DappRadar data. According to the DappRadar report, games can bring millions of new players into the blockchain space and convince them to use cryptocurrencies. The 'play to earn' (P2E)model, in which players compete in games for payouts in cryptocurrencies, is gaining popularity. For example, the Benji Bananas game, built on the Polygon blockchain has seen an increase in users of more than 2000% over the course of this month, the P2E model allows the game to deploy the related popular Ape Coin project; 
  • Bloobmerg's analysis indicates that the crypto correlated NFT market 'is dead', with volume down 97% since January 2022. Still, according to industry experts including co-founder of the rising crypto market Yat Siu, volume alone is not the only indicator of the NFT market, and its decline in the current economic environment is a given. Siu stressed that the key metric is the number of players entering the Web3 world and its growth, which can build a long-term trend. The Web3 space could prove to be an important job and revenue market for new generations of cryptocurrency players and users;
  • Spain's largest telecommunications company, Telefonica, has announced that it will enable cryptocurrency purchases. Telefonica is investing in Spanish exchange Bit2Me, which will provide the payment option. The company is also using the NFT marketplace built on the Polygon cryptocurrency blockchain, as well as MetaMask services integrated with Ethereum and Polygon;

Chainlink, D1 interval. The cryptocurrency reacted positively to the news of the partnership with SWIFT, however, the resistance above $8 still holds firm. It seems positive that Chainlink's price is holding above the 50 and 200-day moving average on the 4-hour interval. The two averages have intersected to form a formation of the so-called 'golden cross', which could give Chainlink plenty of fuel for further growth. For the cryptocurrency, the condition of Bitcoin will remain key. Source: xStation5

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  • SWIFT has announced a partnership with Chainlink to implement so-called cross-chain transactions. According to SWIFT Chief Strategy Officer Jonathan Ehrenfeld Sole, the institution's interest in cryptocurrencies is now 'undeniable'. SWIFT is gearing up for a major transition to ISO20022, which will streamline its interbank remittance network. Chainlink is working with bankers on interoperability and cross-border payments. Cross-chain technology is expected to ultimately improve SWIFT by communicating the banking network with blockchains. The technology is expected to accelerate the adoption of the so-called distributed blockchain ledger and offer solutions for financial institutions. Chainlink CEO Sergey Nazarov detailed the process at the SmartCon conference, held in New York on September 28. 

Bitcoin, H4 interval. The king of cryptocurrencies is moving in a sideways trend, however, the history of cryptocurrencies shows that such trends do not last very long and are punctuated by spikes in volatility. Bitcoin has failed to climb above $20,000 and is still trading in a narrow range between the SMA 200 and SMA 50. Once again, a worrisome reading of the US PCE index and risk aversion ahead of the weekend could weaken cryptocurrency quotes. Source: xStation5

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