Daily News | Traders Predict Hawkish Fed Policy as Crypto Falls; Shibarium Success May Be Impacted by Governance and Competition Concerns

2023-03-09, 01:02

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## Crypto Daily Digest: Investors Predict a Hawkish Fed Policy As Crypto Saw Third Down Session and Diverging Whale Activity

Good morning, traders! Let's seize this Thursday relentlessly and make the most of it! 🚀

Investors weighed the impact of Jerome Powell's hawkish testimony before lawmakers, resulting in a mixed trading day for the US stock market. The S&P 500 and Nasdaq ended slightly higher, but gains were limited, and the two-year yield remained above 5%, its highest since 2007. Although Powell reassured lawmakers that no decision had been made on the size of a rate increase in March, investors are still predicting that the Federal Reserve will remain hawkish, buoyed by strong job figures. Citigroup economists anticipate a 50 basis point increase in the benchmark lending rate at the March meeting. Interest rate traders are also reassessing bets for the next increase, with an almost 80% likelihood of a 50 basis point increase in the target range.

Investors are closely monitoring economic data and job figures in Asia to gauge the pace of interest rate hikes, and as a result, Asian stocks are expected to rise. In Australia, bonds rose, and the country's currency held modest gains. China is set to release inflation figures, and the Bank of Japan's two-day policy meeting is starting. Despite the resilience of the US economy, there is uncertainty about the future, according to the Fed's Beige Book.

Crypto-related stocks had mixed performance, with the Grayscale <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Trust trading higher as its discount narrowed to its lowest level since October. It was revealed that Ark Invest purchased additional shares in Coinbase and Robinhood worth $3.44 million and $9.97 million, respectively. However, overall crypto prices decreased, with <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and Ether down 2.2% and 1.7%, respectively. Meanwhile, according to Glassnode data, smaller <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> whales decreased by 13% to 2,003, while larger whales increased by 34% since March 2022. This discrepancy reflects different sentiments about <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s future prospects and investment strategies. Smaller whales typically take a more tactical approach, while larger whales may be less responsive to changing market conditions due to their size.

Finally, after encountering inquiries from regulators and auditors regarding its financial figures, Silvergate Bank has announced that it will "voluntarily liquidate" its assets and cease operations. The bank had postponed filing its yearly 10-K report and was in danger of being unable to continue as a "going concern." All deposits will be repaid in full. The bank had almost 500 cryptocurrency clients when it filed for an initial public offering in 2018 and had created its own settlement tool, the Silvergate Exchange Network (SEN). The situation is being monitored by the California Department of Financial Protection and Innovation.

## Topic of the Day: Competitive Landscape Concerns and Governance Structure Could Impact Shibarium's Success and SHIB Token's Value

The developers of <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> have announced that they will soon release the beta version of Shibarium, which is a layer 2 blockchain network that will focus on gaming and metaverse applications, as well as providing a cheap settlement for dapps. This release is expected to strengthen the <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> project, which has positioned itself as a serious project with its own blockchain network and dapp ecosystem. The announcement led to gains in <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> ecosystem tokens such as BONE and LEASH, but a slight drop in SHIB token's price suggests some negative sentiment towards the token.

The launch of Shibarium is expected to increase confidence in the project and could lead to a rise in adoption of the SHIB token. Additionally, the focus on gaming and metaverse applications may create new use cases for SHIB and increase demand for the token. Shibarium's role as a cheap settlement for decentralized applications may make it more appealing for developers to build on the <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> network, leading to increased adoption of the SHIB token.

However, concerns around the competitive landscape of the decentralized finance and NFT spaces, where <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> is positioning itself, could be contributing to the negative sentiment towards SHIB. Furthermore, as a governance token, the success of Shibarium will depend on the governance structure and decision-making processes of the <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> project. Any issues with governance or decision-making could negatively impact the development and adoption of Shibarium, and ultimately the value of SHIB.

## <a href="/th/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> (SHIB) $0.000010976 (+0.37%) - Neutral Outlook

**Overview:**

- ***Closest daily support zone: 877.5 - 844.4***
- ***Closest daily resistance zone: 944.2 - 1004.8***
- ***Key Level: 0.000009283 (Monthly Close of May. 2021)***

<br>![](https://gimg2.gateimg.com/image/article/1678323642Untitled0309.png)

Over the past week, there have been five instances on the daily timeframe where the price of SHIB has been rejected from the base of the weekly Fibonacci golden zone [0.000011889 - 0.000010973]. While the bearish sentiment of each of the five candlesticks has decreased, the overall trend for SHIB is currently down. This is due to SHIB breaking the daily 200EMA and the last downward Fibonacci golden zone [0.000012632 - 0.000011990] between February 23 and March 3 and then consolidating within the current downward Fibonacci golden zone [0.000011503 - 0.000011006]. Moving forward, if SHIB closes below the 0.000011503 level, it is likely to fall deeper within the Fibonacci extended zone between 200% and 261.8% [0.00001031 - 0.00009271]. This would coincide with the monthly level of 0.00009283 at 261.8%. Conversely, if SHIB is able to consolidate and each candlestick wick becomes shorter than the last, a retest of the 200EMA is possible. If SHIB can close above the weekly Fibonacci golden zone [0.000011889 - 0.000010973], it would invalidate the current bearish outlook.

**Daily Resistance zones**

1. 0.000011006 - 0.000011503
2. 0.000011656 - 0.000011888
3. 0.000011990 - 0.000012632

<br> **Daily Support zones**

1. 0.000010940 - 0.000010714
2. 0.000010310 - 0.000010203
3. 0.000009752 - 0.000009283

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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