Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good morning!
After a sharp drop and large liquidations in the crypto market last Friday, BTC and ETH are now trading slightly above Friday's close. Bitcoin (BTC) is currently trading at $21.4k (-7.58% in 7 days), Ethereum (ETH) is trading at $1.7k (-10.06% in 7 days), and the ETH/BTC spread is trading at 0.0775 (-2.61% in 7 days).
Fed meeting likely to guide price action
Volume in the market was low this week, with investors staying on the side-lines, awaiting further directional guidance from the Fed. On Thursday, the annual central bank gathering in Jackson Hole began, and later today, Jerome Powell will give an update on the Fed's stance. Most investors are expecting another hawkish speech. The probability of a 75 bps interest rate hike on September 21st currently stands at 62.5%.
What may bring some hope to the market are the PCE price index figures, which are set to be released later today. A decline could indicate that the worst part of the inflation spike is behind us.
Other developments
On August 8th, Tornado Cash was sanctioned by the US Treasury Department for allowing hackers to launder billions of dollars' worth of digital assets. While Uniswap and USDC both followed the sanctions by blocking addresses and freezing funds, not all players in the ecosystem went along with the sanctions. Tether, the company behind USDT, announced this week that they would not blacklist addresses associated with Tornado Cash. They claim that they have not been contacted by officials, and do not have to comply with Treasury sanctions as they are based in Hong Kong and don't operate in the US.
Chilliz (CHZ), a sports fan engagement platform, was among the Top 3 performers this week, gaining 10.3%. The founder announced this week that they will stop using the Ethereum Blockchain and migrate to their own EVM compatible, low fee and high TPS Blockchain, CHZ 2.0, which is currently in the testnet phase. This move should help them deploy and scale faster. According to data from Santiment, August 23rd saw 105 CHZ transactions each exceeding $100,000, which is the largest whale activity since the coin's yearly high in March.
Last but not least, I want to point you towards a new and useful tool. Last week, Coingecko, a free cryptocurrency data aggregator, added a Tokenomics tab to 100 coins. You can now find a tokens' supply schedule, ICO allocation and projects' funding rounds to research a token in detail. These details can help you build an investment thesis for a token. Check out the Tokenomics tab for ETH here.
Happy Trading!
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