Daily News | Dollar, Crypto, and Rules; FOMC Minutes Ahead

2023-02-20, 02:05

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## Crypto Daily Digest: Asian Markets Mixed, US Dollar Rises with Hawkish Fed Comments, Investors Await Crypto Earnings Amid FTX Fallout

Good morning, traders! Hope you had a good weekend. Let's seize this Monday and make the most of it! 🚀

The US dollar experienced an increase in appeal in early trading on Monday, fueled by hawkish comments from Federal Reserve officials and geopolitical tensions. While Asian stocks had a mixed opening, Australian benchmark indexes fluctuated, and US equity futures decreased following Friday's decline of the S&P 500 Index. On the other hand, contracts for Japanese shares showed small gains, and those for Hong Kong experienced a fall.

U.S. inflation rose to 0.5% month-on-month, leading to a year-on-year figure of 6.4%. Investors are closely watching for the changing outlook for interest rates, with traders anticipating quarter-point interest rate hikes at the Fed's next two meetings. On a side note, the FOMC minutes will be released this coming Wednesday.

Despite the prospect of the Fed further tightening and increasing US oil inventories, oil prices slightly increased after their longest series of daily losses this year. Goldman Sachs presented a more optimistic perspective by projecting a potential 24% increase in Chinese stocks by the conclusion of 2023, reversing the decline since late January.

In the cryptocurrency market, <a href="/uk/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s price surged past $25,000 multiple times in the past five days but was unable to stay afloat. Other major cryptocurrencies such as ETH, ADA, and MATIC also saw double-digit gains during the same period. Publicly traded crypto companies like Coinbase, MicroStrategy, and Silvergate also experienced price increases, while <a href="/uk/price/trueusd-tusd" target="_blank" class="blog_inner_link">TrueUSD</a> saw a surge of $50 million in minting during the SEC enforcement action against Paxos and BUSD.

Furthermore, investors are waiting for earnings reports from Coinbase, Coinshares, and Block to see the impact of FTX's fallout on the crypto industry's profitability. Meanwhile, the annual ETHDenver festival will take place from Feb. 24 to March 5, where <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> developers and fans will participate in workshops and make announcements.

Finally, the US is expected to announce more crypto rules following the recent crackdowns on Paxos, Terraform Labs, and their founder, while Binance anticipates paying a fine to settle investigations in the US.

## Topic of the Day: <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a>’s FVM Launch Sparks Surge in Token Price and Implications for Crypto Sector

<a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a>'s token, FIL, experienced a significant increase in price on February 17 ahead of the launch of its <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> Virtual Machine (FVM) on March 1. The FVM will allow developers to create decentralized applications and smart contracts on the <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> network, making it a full-fledged layer 1 blockchain.

The interoperability of FVM with <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Virtual Machine and layer 2 blockchains may decrease user gas fees and increase transaction speed, which could attract the decentralized finance (DeFi) community, whose popularity has grown due to the collapse of several cryptocurrency firms that eroded trust in centralized exchanges.

The launch of FVM could have several implications for the crypto sector, including increasing the appeal of <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> to users seeking flexible and autonomous storage solutions. The interoperability of FVM with other blockchain networks such as <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> may also help <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> to expand its ecosystem and integrate with other DeFi projects, potentially increasing its user base. Moreover, the success of <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> and FVM could disrupt the current centralized data storage market dominated by companies such as Amazon, Google, and Microsoft.

However, <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> will need to deliver on its promises to attract users and developers to its network. The crypto sector is highly competitive, with many projects and blockchain networks vying for attention and adoption. To maintain its relevance and attract a loyal user base, <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> will need to continue to innovate and stay ahead of the curve.

## <a href="/uk/price/filecoin-fil" target="_blank" class="blog_inner_link">Filecoin</a> (FIL) $8.6113 (+1.75%) - Bullish Outlook

**Overview:**

- ***Closest daily support zone: 8.370 - 7.545***
- ***Closest daily resistance zone: 8.700 - 9.140***
- ***Key Level: 8.700 (Monthly Low of Dec. 2017)***

![](https://gimg2.gateimg.com/image/article/1676858648Untitled0220.png)

On Sunday, FIL successfully broke above an ascending trendline and closed within a weekly Fibonacci Extension zone (7.545 - 10.399). However, its price action experienced rejections, first at the weekly level of 9.14 (Weekly close between Mar. 19 - Apr. 02, 2018), then at the monthly level of 8.70 (Monthly low of Dec. 2017). Going forward, FIL will likely retest these levels and see a pullback above the 50% daily Fibonacci Retracement level of 7.30, which is coincidentally the Monthly low of Jun. 2018, before we see another surge past the psychological 10-dollar barrier.

**Daily Resistance zones**

1. 8.700 - 9.140
2. 9.660 - 10.589
3. 11.730 - 12.430

**Daily Support zones**

1. 8.370 - 7.545
2. 7.300 - 7.076
3. 6.640 - 6.170

<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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