Gate.io Blog Daily Flash | Cryptocurrencies rose on US markets relief rally but Global bond yields are not looking good for the economies

Daily Flash | Cryptocurrencies rose on US markets relief rally but Global bond yields are not looking good for the economies

29 September 09:53

Fundamental & Technical Outlook

Macro

The IMF is urging Liz Truss, U.K. prime minister to "re-evaluate" the tax cuts amid the bond turmoil that had forced the hand of BoE, warning that the new measures are likely to fuel a cost-of-living crisis.

The Bank of England will suspend the planned start of its gilt selling next week and temporarily buy long-dated bonds, scooping up "whatever scale is necessary." The yield on the 10-year gilt tumbled in response, falling 36 basis points to 4.15%, while pound sterling rose above $1.08, before quickly wiping out those gains.

The DJIA and Nasdaq slipped further into a bear market and the S&P 500 fell to its lowest level in almost two years on Tuesday but made above-average gains on Wednesday at 1.88%, 2.05%, and 1.97%, respectively.

As Jerome Powell looks set on vanquishing soaring inflation and entrenched expectations, economic growth and hopes of a soft landing have been thrown into the back seat. The central bank has promised more rate hikes in November and December, and there are fears that the real effects could soon start rippling through the economy.

The 10-year Treasury climbed 4 basis points overnight to breach the key 4% level. The last time that happened was in 2008, at the height of the global financial crisis. Cryptocurrencies typically move in the opposite direction of yields.

Bitcoin (BTC) was trading at $19,491 (+2.14%) and Ether (ETH) was changing hands at $1,338 (+0.54%) as of this writing. Chainlink (LINK) -6.43%, Polygon (MATIC) +1.43%, and Uniswap (UNI) +2.06%.

🟠 BTC

Weekly timeframe

Looking ahead in the coming weeks, key resistance and support zones have been measured from various Fibonacci extension levels.

BTC Weekly Support zones

$17,624 - $18,960
$15,551 - $17,624

BTC Weekly Resistance zones

$18,960 - $19,858
$19,667 - $22,531

Daily timeframe

As of this writing on Sep. 28 22:45 UTC, BTC was trading at $19,537 (+2.42%) in a 24hr period.

Bitcoin (BTC) was up 7.27% at one point on Tuesday. The sudden surge provided bulls with two resistance zones to push through if they want to see BTC stay above $20K. The tight squeeze formation that started on Sep. 19 had seen the bulls coming on top, for now.

On Wednesday, BTC plunged further as the Asian trading session began and remain low during the European session. At around 10:00 UTC, price actions started showing upside momentum and the price of BTC continued its ascent until 21:00 UTC.

BTC Daily Resistance zones

19,858 - 20,320
19,500 - 19,858

BTC Daily Support Zones

$18,816 - $19,227
$18,472 - $18,816

🔵 ETH

Weekly Timeframe

Below the weekly trendline, a support zone ($1,060 - 1,264) can be derived by using the Fibonacci extension tool, which generates three Fibonacci extension levels (127.2%, 141.4%, & 161.8%) measured from the plunge between Aug. 15 - Aug. 22, which coincide with the opening and close of the weekly candle on Jul. 4.

As of Wednesday, Ether (ETH) was trading above the support zone.

Daily timeframe

As of this writing on Sep. 28 23:36 UTC, ETH was trading at $1,338 (+0.8%) in a 24hr period.

In the coming days, there are three resistance zones and support zones to keep on the lookout for.

ETH Daily Resistance zones

$1,356 - $1,378
$1,383 - $1,418
$1,392 - $1,435

ETH Daily Support zones

$1,303 - $1,328
$1,266 - $1,286
$1,243 - $1,277

📌 The topic of the Day: Christie has launched its own Ethereum NFT marketplace

In March 2021, Christie’s, a 256-year-old Luxury auction house, made a big splash in the NFT space as the firm auctioned off an NFT artwork titled "Everydays: The First 5,000 Days" for a record $69.3 million.

And now the old institution says it wants to become the first global auction house to host fully on-chain sales, through the launch of its own dedicated NFT “on-chain auction platform” titled “Christie’s 3.0.”

Christie’s 3.0 marketplace was built in collaboration with smart-contract startup Manifold and partnered with blockchain analytics firm Chainalysis and metaverse platform Spatial to create additional functionality. The platform will also provide users with tools for compliance and tax purposes. All transactions are recorded in full on the Ethereum blockchain.

For the launch of the marketplace, Christie’s is offering just one exclusive project: a collection of nine NFTs from Diana Sinclair, a multidisciplinary artist.

Meanwhile, NFT transactions on the Ethereum blockchain are -60% from their peak during the 2021 bull run.

🗒 Happenings of The Week (Sep. 24 - 29)

🔹 Christine Lagarde, president of the European Central Bank (ECB) said on Wednesday a digital Euro will not be used for commercial purposes and would protect people from data collection. The central bank announced the five partner companies that will help build the trial payment system earlier this month. The evaluation and results of the project are expected in March 2023.
🔹 A daily transaction cap for non-euro stablecoins has been reinserted into the European Union’s draft rules for cryptocurrencies. The newly reinstated provision puts a cap on how much foreign currency-backed tokens are allowed to be transacted within one day. The European Parliament’s Committee on Economic and Monetary Affairs is scheduled to vote on the legislation in October or November.
🔹 Interbank messaging service SWIFT has linked up with Chainlink Labs on a cross-chain interoperability proof-of-concept project. Chainlink oracles allow on-chain smart contracts and applications to utilize off-chain data in a secure and decentralized manner. It recently announced the SCALE program to grow decentralized application ecosystems in the Layer 1 and 2 space by helping with access and cost barriers to oracle services and configurations.
🔹 Lightning Labs releases initial Taro protocol code. This will allow users to issue and transfer assets on the bitcoin blockchain and Lightning. The company first launched Taro, a Taproot-powered protocol, in April. Lightning Labs was founded in 2016 and has raised money from Square CEO Jack Dorsey and Robinhood CEO Vlad Tenev.
🔹 Terraform Labs Founder Do Kwon says he's 'making zero effort to hide' but declined to disclose his exact whereabouts. On Monday, South Korea says Interpol has issued a red notice for Do Kwon. Terraform Labs executives are wanted by the government for allegedly breaking capital market laws, following the $40 billion collapse of luna and terraUSD. On Tuesday, the Luna Foundation Guard (LFG) refuted claims from a CoinDesk report that suggested a wallet was set up for the LFG on Binance this month and linked to 3,313 BTS that authorities have sought to freeze.
🔹 This week’s fundraising activities include but are not limited to: Crypto investment firm Pantera Capital is seeking $1.25 billion for a second blockchain fund. Pantera’s portfolio includes companies like Anchorage Digital, Amber Group, Coinbase, Flashbots and FTX. Tech venture studio MPCH Labs raises $40 million Series A. The startup is developing a proprietary MPC6 engine based on multi-party computation (MPC) technology. bitcoin payments firm Strike raises $80 million in a Series B funding round led by Ten31. Strike is building a payments protocol on bitcoin’s Lightning network.
🔹 IMF calls on global financial watchdog to lead crypto regulation push. Two new reports by the International Monetary Fund (IMF) on regulating stablecoins and unbacked cryptoassets have called on the Financial Stability Board (FSB) to set and lead global efforts on crypto regulation. The FSB reports to G20 officials.
🔹 Australia’s CBDC pilot is looking for industry participants to make submissions on CBDC use cases. Dubbed the “eAUD,” the pilot is currently in the research stages and will be tested by participants in January next year. Last week, The People’s Bank of China announced it was extending the trial of e-CNY to several new provinces including Guangdong and Sichuan.
🔹 California Governor Gavin Newsom vetoed a bill that would create a license for companies operating in the crypto space. Newsom wrote in a Sept. 23 letter to the California State Assembly, “A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.”
🔹 Disney is hiring transaction lawyer for 'aggressive' NFT and DeFi plans. Disney CEO says the conglomerate is focused on “next generation storytelling.” Last year, it dropped the Walt & Mickey “Partners” NFT on the VeVe app for iOS and Android.
🔹 Ethereum gas fee has reached a two-year low. The number of users, transaction count on Ethereum, and transaction count on Layer 2s remain on a positive upward trajectory. Notably, interest in speculative NFT buying has dropped significantly.
🔹 China GPU prices drop to new lows after the Ethereum Merge. The Nvidia GeForce RTX 3080’s price dropped from $1118, or 8,000 yuan, to 5,000 yuan within three months, according to a Chinese merchant.
🔹 Hacker steals $950,000 from crypto vanity address as exploits continue. Hackers are continuing to steal cryptocurrency created by a tool called Profanity. The latest hack comes after Wintermute lost $160 million as a result of this issue.

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice.
Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced.
In all other cases, legal action will be taken due to copyright infringement.

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