Bitcoin continues to hold above $20,000, and Ethereum is trading near $1,370. Markets are positioning themselves for tomorrow's NFP reading from the U.S. labor market, which could fuel or bury hopes for a Fed pivot:
- The crypto market is seeing a temporary uptick triggered by a weaker-than-expected U.S. labor market report, where U.S. jobless claims this week rose nearly 10% above analysts' expectations which a) may indicate a slow cooling of the economy (inflation will start to fall?) and b) gives fuel to bulls' expectations of an increasingly weak labor market, which could ultimately cause the Federal Reserve to pull back from its aggressive cycle earlier than it currently assumes (rising unemployment). Still, tomorrow's NFP reading will play the most important role, as pointed out by Mary Daly, head of the San Francisco Fed, among others. In connection with the reading, tomorrow's session may herald a spike in volatility in the cryptocurrency market;
- The Fidelity Investments fund has created the Ethereum Index, giving clients the opportunity to invest in Ether without having to open cryptocurrency accounts. The minimum investment amount is currently $50,000, and the fund has already recorded $5 million in inflows since September 26. The Bitwise fund, in turn, has created a New York-listed ETF that buys entities involved in the creation of Web3, the Bitwise Web3 ETF;
- Joining the Metaverse world is Hugo Boss, the fashion giant will create a series of NFT tokens as part of its 'Embrace Your Emotions' line. The NFT token will enable holders to receive a 10% discount on all Hugo Boss products in stores around the world. The case well demonstrates the business opportunities behind linking NFT metavers to products in the real world; Nike also has similar promotional and marketing experiments to its credit;
- Florian Grummes who manages at Midas Touch Consultign expects Bitcoin to break out of the consolidation in which Bitcoin has been in de facto since August. A strong U.S. dollar could support a decline in the strength of cryptocurrencies and drive them to new lows mime positive signs from an on-chain or technical analysis perspective;
- On the other hand, one of Bloomberg's leading commodity and commodity market analysts, Mike McGlone is still bullish on Bitcoin. He cited, among other things, BTC's lowest volatility ever relative to the Bloomberg Commodity Index and a possible 'peak' in commodity valuations as arguments for a rebound in risk assets. According to McGlone's subjective opinion, BTC is still on its way to becoming digital gold, and higher volatility increases the chances of sharp increases.
Ethereum chart, M30 interval. The SMA50 crossed the bottom of the SMA200 on the half-hour interval, which in the past has heralded at least a short-term demand advantage. The 50-session average dipped below the 200-session one on Sept. 15, after the successful Merg. Over the past weeks it has clearly struggled to stay above the SMA200 on a sustained basis, finally managing to do so on October 4, the formation is referred to as a 'golden cross', however, due to the low interval, the intersection formation is not a very significant value from a technical analysis point of view and could be shaken. The RSI is at 60 points, still far from the euphoric levels above 70 points, which gives ETH room for growth. Bulls are clearly waiting for Wall Street to open, index contracts gained after a weak claims reading. Source: xStation5
