CRYPTO week ahead: September 12 – 18
Last week in the news
Markets modestly rebounded as of the end of the previous week, after the ECB's raise of interest rates by 75bps. At the same time, positive developments were also on the crypto market, with Bitcoin`s return to levels above 20K, while Ether is counting days until the implementation of the Merge fork, ending the week above 1.7K.
There has been a lot of central banker`s activity during the previous week. The most important news is related to ECB`s increase of benchmark interest rates, for the second time within the last 11 years. Increase on Thursday was by75 bps, however, ECB officials noted that more increases might come in the following period, as they expect for inflation “to stay above target for an extended period”. On the same day, FED Chair Powell in a public appearance stressed for one more time FED`s commitment to return inflation to targeted 2%. This implies further higher interest rates. However, in the week ahead markets are expecting to see some cooling down in the US inflation figures, which will be released on Tuesday, with expected core inflation at 6% and inflation at 8,1% y/y .
Topic about the mining industry's influence on climate change continues to be one of the main discussion points in the US, but also across developed countries. The White House of Science and Technology Policy issued a report, noting that energy consumption used for mining crypto currencies threatens the US achievement of goals related to mitigation of climate change impacts. As it has been noted, significant consumption of energy is currently equal to consumption of all residential lightning in the US, and contributes to almost 0.3% of global greenhouse gas emissions.
Securities and Exchange Commission officials continue to call for enforcement of laws within the crypto industry. SEC`s Chair Gary Gensler pointed this week to the unregistered exchangers operating within the US, that SEC will not “sit idle” , expecting from them to officially register tokens as securities.
Latest decision from Binance for conversion of all existing stablecoins, USDC, TUSD and USDP to binance USD (BUSD) is perceived positively by analysts. They are noting that this move would certainly increase the supply of BUSD, by some estimates for $908 million. Also, in the long term it could have an additional positive effect, as more users will get familiar with this stablecoin, which might additionally boost the supply amount of this coin.
Crypto market cap
During the previous week, the ECB raised its interest rates by 75bps, while FED officials continued with old rhetoric regarding monetary tightening in order to bring back inflation to the targeted level of 2%. There has not been any negative market reaction to these news, in which sense, it looks like that the market has already priced future rate increases. This made a positive impact also on the crypto market. During the previous week total market capitalization reached again $1 trillion in value, increasing it by 6% on a weekly basis. Major coins supported this increase, although altcoins also had good performance. On a positive side is also that daily trading volumes had been modestly increased to the average level of 120B on a daily basis. Total funds outflow from the beginning of this year stands at the level of 1.177B, which is a total drop of 54%.
Total crypto market capitalization reached $1 trillion again, after a modest drop during August and beginning of September this year. Although this is positive news, the currently unstable macroeconomic environment continues to be a threat to the overall economic growth, and in this sense, it might contribute to the crypto market`s slow recovery in the future period. Last week`s increase in total crypto market capitalization was led by major coins: Bitcoin, Ether and Binance Coin. Ether continues to be supported by forthcoming Merge fork, in which sense, coin performed almost the same as BTC, increasing its market cap by 21B or 11%, while Bitcoin added 27B or 7% to its total cap. BNB continues to gain in strength, with a surge in market cap by 2.5B or more than 5%. Another coin which added an amount above 11B was Solana, with an increase in cap by 12% on a weekly basis. Altcoins with significant growth in value during the week were EOS with an increase of 21%, followed by Ethereum Classic and Bitcoin Gold, with a surge in market cap by 20% and 16% respectively. As for coins in circulation, Filecoin continues with its growth, adding 1.4% in circulating coins, while Uniswap had an decrease by 11% on a weekly basis.
Crypto futures market
During the previous week, futures for both BTC and ETH were supported by the positive market sentiment, reflected in the spot market. ETH continues to trade at higher grounds, with the forthcoming Merge fork strongly supporting the price for both short and long term futures. During the previous week short term ETH futures were traded around 11% higher, reflecting the spot market. Longer term futures were traded on average 7% higher, where maturities as of December this year reached levels above 1.7K. At the same time, prices for next year were traded at lower grounds, above 1.6K, which points to investors uncertainty over market conditions during the next year.
BTC short term futures were up by 7% on average compared to the week before, however, there had been a drop in price of longer maturities, which ranged about 2%. On a positive side is that December this year was traded above 21K.
Markets modestly rebounded as of the end of the previous week, after the ECB's raise of interest rates by 75bps. At the same time, positive developments were also on the crypto market, with Bitcoin`s return to levels above 20K, while Ether is counting days until the implementation of the Merge fork, ending the week above 1.7K.
There has been a lot of central banker`s activity during the previous week. The most important news is related to ECB`s increase of benchmark interest rates, for the second time within the last 11 years. Increase on Thursday was by75 bps, however, ECB officials noted that more increases might come in the following period, as they expect for inflation “to stay above target for an extended period”. On the same day, FED Chair Powell in a public appearance stressed for one more time FED`s commitment to return inflation to targeted 2%. This implies further higher interest rates. However, in the week ahead markets are expecting to see some cooling down in the US inflation figures, which will be released on Tuesday, with expected core inflation at 6% and inflation at 8,1% y/y .
Topic about the mining industry's influence on climate change continues to be one of the main discussion points in the US, but also across developed countries. The White House of Science and Technology Policy issued a report, noting that energy consumption used for mining crypto currencies threatens the US achievement of goals related to mitigation of climate change impacts. As it has been noted, significant consumption of energy is currently equal to consumption of all residential lightning in the US, and contributes to almost 0.3% of global greenhouse gas emissions.
Securities and Exchange Commission officials continue to call for enforcement of laws within the crypto industry. SEC`s Chair Gary Gensler pointed this week to the unregistered exchangers operating within the US, that SEC will not “sit idle” , expecting from them to officially register tokens as securities.
Latest decision from Binance for conversion of all existing stablecoins, USDC, TUSD and USDP to binance USD (BUSD) is perceived positively by analysts. They are noting that this move would certainly increase the supply of BUSD, by some estimates for $908 million. Also, in the long term it could have an additional positive effect, as more users will get familiar with this stablecoin, which might additionally boost the supply amount of this coin.
Crypto market cap
During the previous week, the ECB raised its interest rates by 75bps, while FED officials continued with old rhetoric regarding monetary tightening in order to bring back inflation to the targeted level of 2%. There has not been any negative market reaction to these news, in which sense, it looks like that the market has already priced future rate increases. This made a positive impact also on the crypto market. During the previous week total market capitalization reached again $1 trillion in value, increasing it by 6% on a weekly basis. Major coins supported this increase, although altcoins also had good performance. On a positive side is also that daily trading volumes had been modestly increased to the average level of 120B on a daily basis. Total funds outflow from the beginning of this year stands at the level of 1.177B, which is a total drop of 54%.
Total crypto market capitalization reached $1 trillion again, after a modest drop during August and beginning of September this year. Although this is positive news, the currently unstable macroeconomic environment continues to be a threat to the overall economic growth, and in this sense, it might contribute to the crypto market`s slow recovery in the future period. Last week`s increase in total crypto market capitalization was led by major coins: Bitcoin, Ether and Binance Coin. Ether continues to be supported by forthcoming Merge fork, in which sense, coin performed almost the same as BTC, increasing its market cap by 21B or 11%, while Bitcoin added 27B or 7% to its total cap. BNB continues to gain in strength, with a surge in market cap by 2.5B or more than 5%. Another coin which added an amount above 11B was Solana, with an increase in cap by 12% on a weekly basis. Altcoins with significant growth in value during the week were EOS with an increase of 21%, followed by Ethereum Classic and Bitcoin Gold, with a surge in market cap by 20% and 16% respectively. As for coins in circulation, Filecoin continues with its growth, adding 1.4% in circulating coins, while Uniswap had an decrease by 11% on a weekly basis.
Crypto futures market
During the previous week, futures for both BTC and ETH were supported by the positive market sentiment, reflected in the spot market. ETH continues to trade at higher grounds, with the forthcoming Merge fork strongly supporting the price for both short and long term futures. During the previous week short term ETH futures were traded around 11% higher, reflecting the spot market. Longer term futures were traded on average 7% higher, where maturities as of December this year reached levels above 1.7K. At the same time, prices for next year were traded at lower grounds, above 1.6K, which points to investors uncertainty over market conditions during the next year.
BTC short term futures were up by 7% on average compared to the week before, however, there had been a drop in price of longer maturities, which ranged about 2%. On a positive side is that December this year was traded above 21K.
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