Steaker Biweekly Bulletin 2022 Oct. #3
Oct 14, 2022
Market Focal points
⛏ Another 0.75 Points Raised - Crypto Prices Plummet Over Hawkish Fed Remarks
With U.S. inflation still running exceptionally hot, the Federal Reserve (Fed) implemented a third consecutive 0.75 percentage point rate rise on September 22 as expected, lowering the country’s future projections.
The crypto market this year got off a rocky start, and Powell’s hawkish comments last month have made the market even more jittery, dampening investors’ sentiments and expectations that the Fed would slow the pace of interest rate hikes.
Not only did the overall U.S. stocks take a nosedive, but the price of BTC also plunged below $18,000. The ETH price fell to somewhere around $1,200 too.
📍BTC Remains Stable near the $18,500 Level amid Economic Turmoil
From September 28 to 29, the world continued to face numerous challenges. First, the pound sterling tumbled against the dollar to below $1.09 after UK Chancellor Kwarteng unveiled a tax-cutting package to bring soaring inflation under control (though later the government decided to U-turn on plans to scrap 45p tax rate).
Second, tensions between Ukraine and Russia have escalated to a new level with numerous Ukrainian cities being struck, resulting in a deeper energy crisis as well as volatilities in the global market and worsening the macroeconomic situation.
Just when things looked black – bearish sentiments permeated every section of the market and prices of cryptos remained sluggish, there was always a silver lining. BTC's price constantly stayed above the key $18,500 support, mostly flitting between $18,500 and $19,000. ETH’s price was recovering losses from the $1,255 support and is now trading above the $1,300 level.
📝 US Non-Farm Payrolls Beat Expectations - BTC Holds Steady around $19,000
U.S. stocks rose notably from October 3 to 4. Thanks to the market's rise, BTC rallied above $20,000. A good start to Q4 as it seemed, but this return to better conditions did not last long.
The net nonfarm payroll employment in the U.S. rose in September according to the latest figures released by the Bureau of Labor Statistics, and unemployment was lower than expected.
This indicates that the U.S. labor market remained healthy. In that regard, Fed officials were expected to remain laser-focused on raising interest rates and doing whatever they could to rein in inflation without worrying about any downside for the moment.
Upon the release of the news, U.S. stocks started to slide back, holding back the uptrend of BTC. As a consequence, the price of BTC dipped to around $19,000.
🔎 CPI Report for Sept. Released - BTC on an Uptrend near $20,000 Following a Dip
The Consumer Price Index for September, released earlier this Thursday, rose 8.2 percent from a year ago, slightly higher than economists' prediction of 8.1 percent.
The so-called core CPI climbed by 6.6%, which is higher than the 6.3% in August. This core CPI is usually seen as a more steady indicator of inflation, yet it rose at the fastest annual pace in 40 years since 1982, signaling that inflation still remains relentless. The Fed is expected to continue ramping up interest rate hikes as inflation burns out.
It’s worth noting that the price of BTC sank to its lowest of $18,317 following the release of the report of CPI. Yet shortly after the dip, it showed an upward trend, rising above 8% up to $19,880 as of the time of writing.
Mainstream Crypto Prices
BTC’s price history over the last month shows that the lowest price was $18,650, and the highest price reached $24,995. (September 15 to October 13)
ETH's price history over the last month shows that the lowest price was $1,433, while the highest price was up to $2,024. (September 15 to October 13)
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