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!
Traditional global markets continue to be concerned about an economic slowdown following another outbreak of the Delta COVID variant. Despite this, the major global indices are trading at all-time highs. During the Jackson Hole Symposium, the US Federal Reserve announced that inflation might persist longer than expected. Additionally, they were not specific about reducing their monthly bond purchases.
Several cryptocurrencies – especially the alternatives to Ethereum – are also trading at all-time highs, e.g. Cardano (ADA), Solana (SOL), and Cosmos (ATOM) to name a few.
Solana SOL (daily)
Ethereum (ETH) has shown resilience throughout the entire week, and has started outperforming the market, e.g. ETH outperformed BTC by several percentage points.
Ethereum ETH (daily)
Most important here is the fact that it broke through the important resistance level of 0.069 against BTC, and is currently finally trading at roughly 0.077.
Ethereum / Bitcoin ETHBTC (daily)
The factors responsible for this huge move are definitively the tremendous amount of options that were traded during the past few days, and also the general underperformance of ETH against all major Top Ten currencies.
Bitcoin (BTC) has again reached the $50,000 area, and has for the most part been trading in a $2'000 range over the past few days. BTC has not been dominating lately, but has rather been finding itself in a healthy consolidation. The bull-run in many altcoins is supported by the strength of BTC.
Bitcoin BTC (daily)
The NFT (nonfungible token) ecosystem continues to not be fully understood by the majority, but has been reaching new highs practically on a daily basis. Crypto Punks and Solana Apes are definitively a new dimension of investment.
There is an interesting podcast by Ripple’s CTO David Schwartz that really impressed me back in April 2021 before the hype in this space started to pick up. He compares fungible and nonfungible tokens with each other, and raises the question of whether NFTs are just a trend or not. According to him, it is too early to determine whether nonfungible tokens are just a fad, but does state that NFTs do have the potential to shift the way we exchange ownership and rights of specific pieces of information. Additionally, he sees a real possibility for long-term benefits if there is an entire ecosystem involving five key layers:
- Infrastructure (storing NFTs)
- Minting (process of easily creating NFTs)
- Publishing and Storage
- Custody (wallet, browser, and viewer that enables people to show their NFTs to others)
- Marketplace and Swap (acquiring and purchasing NFTs in a secondary market)
Happy Trading!
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