Market Update (Nov. 03, 2022)
Post-FOMC, Bitcoin collapses as bulls battle to sustain their momentum.
The overall interest rate has risen by 75 basis points since the FOMC meeting yesterday, reaching a record high of 4%. As Powell signaled that there may be more rate hikes in the future, Bitcoin and other risky assets fell.
The S&P 500 declined further, falling to 3700, or 5% below Tuesday's high of 3923, as Bitcoin tested the $20,000 mark. On the other hand, DXY has overcome the resistance at 111.8 and is moving toward a test of 113.4.
In the future, if Bitcoin is unable to reverse the downward trend, it is likely to lose $20,000 in value.
Today's Winning and Losing Alts
🟢Winners:
- Arweave - AR (+50.67%)
- Fantom - FTM (+19.59%)
- Flow - FLOW (+14.33%)
🔴Losers:
- FTX Token - FTT (-4.21%)
- Nexo - NEXO (-4.15%)
- Helium - HNT (-1.59%)
Bitcoin Recap
As expected, after the FOMC, there was an initial increase to $20,800, followed by a decline to $20,000 that put many long positions in the hole. We then experienced a significant move up to $20,385, but the sell-off that followed had more volume, indicating that there were more sellers than buyers at higher prices.
Looking ahead, we may anticipate Bitcoin to reach lower highs and eventually leave this support area during the weekend, falling to at least $17,800.
Recapitulating Ethereum
Ethereum performed as expected and reached its target price of $1,500 after an initial rise and a subsequent 7% drop after the FOMC. Ethereum's volume is neutral, but momentum indications point to buyer tiredness, and the ETH/BTC pair is exhibiting signs of weakening at the crucial 0.0763 resistance level. In the future, $1,490 retests are probable before a push down below $1,350.
Visiting the NFT Space
Today, there was a pullback in about 30% of the top 50 NFT collections by trading volume. Other NFTs didn't have the same spectacular increase of more than 1,000% as yesterday, despite an increase in trading volume.
As more controversy is being generated around the NFT and GOO token, Art Gobblers, which currently holds the top spot by trading volume, posted a 45% decline, making it one of the biggest losers by volume growth today.
Due to the excitement over the Villains whitelist, Digi Daigaku saw a 335% increase.
