Daily News | Global Markets Expect Positive Open as Inflation Rate Slows and Fed May Slow Interest Rate Hikes, Crypto Market Continues to Boom

2023-01-13, 02:59

TL; DR

🥂 Good morning, today is Friday, Jan. 13, 2023. It’s going to be another great day. Let’s get after it relentlessly.

Macro: Global markets expected to open positively as US inflation rate slows, and Fed may slow interest rate hikes. US officials signal willingness for rate increase, but stress more work to tame prices, no rate cuts expected. However, resilient consumer demand and tight labor market threaten upward pressure on prices. Meanwhile, the yen holds most of 2.5% rally as speculation of BOJ policy review keeps traders on guard.

Crypto: BTC had a 4.99% increase to reach $18,848, while Ether (ETH) had a 1.74% increase to reach $1,413. The total crypto market cap increased 2.94% to $862.09B, from $838.39B the day before. The top three winners among the top 20 coins were UNI, SHIB, and ATOM while the only loser was AVAX. Mining stocks saw significant increases following the release of US CPI and inflation rate which contributed to Nasdaq outperforming the other indices.

Topic of the Day: Polygon PoS Developers Unveil Plan for Hard Fork to Tackle Gas Spikes and Chain Reorganizations

Notable Headlines: The SEC charged both Gemini and Genesis with unregistered offering and sale of securities to retail investors; Bill Gates praised AI and downplayed other technologies such as crypto and the metaverse; A new NFT collection from former U.S. President Donald Trump has just launched…

Macro at a Glance: Global Markets Look Promising As US Inflation Dips and Central Banks Weigh Rate Hikes

Asian markets are expected to open positively, with a decrease in inflation pressure in the US and the possibility of central banks slowing interest rate hikes.

Australian shares have risen, while Japan’s contracts have dropped. Bond yields have also fallen in Australia and New Zealand, as traders focus on the idea that aggressive monetary policy may be having its desired effect.

The yen has held most of its 2.5% rally and speculation that the Bank of Japan may review the effects of its ultra-loose monetary policy is keeping traders on guard for any bond-buying operations.

The US swap market is showing less than 50 basis points of tightening for the next two Fed meetings, with a small chance of no move at all in March. The slowest US inflation rate in 14 months has also helped boost commodities, which have rallied this week due to growing confidence in China’s recovery.

The US inflation rate has taken a bit of a breather in December, which could be a sign that prices have peaked for now. This is music to the ears of the Federal Reserve, which is now on track to slow down the pace of interest rate hikes.

According to a report from the Labor Department, the overall Consumer Price Index dipped 0.1% from the previous month, thanks to cheaper energy costs. This is the first decline in 2 and a half years. The measure was also up 6.5% from a year ago, which is the lowest it’s been since October 2021.

Excluding food and energy, core CPI rose 0.3% last month, and was up 5.7% from a year ago. This is the slowest pace since December 2021. When paired with previous months’ lower-than-expected readings, this data points to more consistent signs that inflation is easing, and may pave the way for the Fed to make a quarter-point hike at their next meeting ending Feb. 1.

However, the central bank’s work is far from over, as resilient consumer demand, particularly for services, paired with a tight labor market, threatens to keep upward pressure on prices.

Some US officials have signaled a willingness to make a 25 basis-point rate increase at their next meeting, while also stressing that the Fed still has more work to do to tame prices and not anticipating any rate cuts this year.

💡 Today’s Markets at Jan. 13 00:00 UTC

BTC +5.04% at $18,860; Ether +1.86% at $1,416

Asia: Australia +0.67%; Japan -0.36%; Hong Kong +0.36%; China +0.05%; India -0.21%.

Europe: London +0.66%; Paris +0.74%; Frankfurt +0.74%.

US Spot Indices: Dow +0.64%; S&P +0.34%; Nasdaq +0.64%.

US Index Futures: Dow -0.01%; S&P -0.01%; Nasdaq -0.11%.

US Two-year Treasury down 6bps at 4.145%.

US Ten-year Treasury down 10bps at 3.444%.

UK Ten-year Gilt Bond down 6bp at 3.344%.

US Dollar Index -0.91% at 101.87.

FX in 24hrs: GBP: +0.64%; EUR: +0.96%; JPY: +2.50%; CNY: +0.46%.

Gold +1.24% at 1,898; Light Crude +0.86% at 78.33.

🧠 Catalysts this week

Thursday ⭐️: **Australia Balance of Trade, China Inflation Rate, US Inflation Rate

Friday ⭐️: China Balance of Trade, UK GDP, Germany GDP, US Michigan Consumer Sentiment

🗓 Catalysts next week

Monday: Australia Westpac Consumer Confidence

Tuesday: China GDP, China Industrial Production, UK Unemployment, Germany ZEW Economic Sentiment, Canada Inflation Rate

Wednesday: Japan BoJ Interest Rate Decision, UK Inflation Rate, US PPI, US Retail Sales, Japan Balance of Trade

Thursday: US Building Permits, Japan Inflation Rate

Friday: UK Gfk Consumer Confidence, UK Retail Sales

Crypto Daily Digest: BTC, UNI, and ATOM Lead the Pack As Total Crypto Market Cap Booms, Mining Stocks Saw Spectacular Gains

Among the top 20 coins, Bitcoin (BTC) saw a whopping increase of 4.99% to reach $18,848, while Ether (ETH) also saw gains of 1.74% to $1,413. The total crypto market cap rose 2.94% to $862.09B from $838.39B yesterday and $818.28B the day before, per tradingview data.

The top three winners among the top 20 coins were Uniswap (UNI), which saw an explosive increase of 5.71% to 6.20 following an 9.17% since Sunday, Shiba Inu (SHIB), which saw a stellar increase of 4.06% to 0.00000946 after seeing a slight decrease of 1.40% in the previous day, and Cosmos (ATOM), which overtook The Open Network (TONCOIN) in ranking the day before and increased by 3.95% to 12.21 after rising a little over 16% since Sunday.

The only loser among the top 20 coins is Avalanche (AVAX) which fell by 3.21% to 15.38 after seeing an explosive rise of 27% on Wednesday. AVAX is still up by over 29% since Sunday.

The Nasdaq index once again led the gains among the top three indices in the US with a 0.64% rise, albeit significantly slower than the previous two days with an average daily gain of 1.2%.

MicroStrategy (NASDAQ:MSTR) rose 7.91% after rising a little over 27% in the previous four trading days while Coinbase (NASDAQ:COIN) rose 8.59% after seeing a little over 24% gains since Monday. Jack Dorsey’s Block rose

Grayscale’s GBTC fund, on the other hand, continued its positive start to the year. Shares in the fund are over $10 — up over 20% since last week — as the discount to net asset value (NAV) continues to narrow. Shares in the GBTC fund now trade at a discount of 38% to the value of the Bitcoin in the fund.

Meanwhile, Silvergate (NYSE:SI) saw a nice recovery of 12.89% after being traded down by a little over 7% since last Thursday, and Galaxy Digital (OTC:BRPHF) shares rose 5.14% after falling slightly at -0.80% the day before.

Mining stocks saw a spectacular day following the release of US CPI and inflation rate, which also boosted the outlook for Bitcoin. Greenridge Energy (NASDAQ:GREE) saw an increase of 61.56% in a single day, bringing it a total of 170% gains since Monday.

Marathon Digital (NASDAQ:MARA) rose 30.91% and is up by over 65% since Monday. Similarly, Bitfarms (NASDAQ:BITF), Hive Blockchain (NASDAQ:HIVE), and Hut 8 (NASDAQ:HUT) all saw between gains of 22%-44% in a single day.

🌐 Top 20 Coins Performance

BTC +4.99% at 18,848; ETH +1.74% at 1,413.

BNB +0.96% at 287; XRP +0.15% at 0.374; DOGE +2.80% at 0.0804.

ADA +2.37% at 0.330; MATIC +2.70% at 0.915; DOT +2.13% at 5.22.

TRX +0.75% at 0.0571; SHIB +4.06% at 0.00000946 LTC +2.68% at 86.14.

SOL +1.08% at 16.54; UNI +5.71% at 6.20; AVAX -3.21% at 15.38.

ATOM +3.95% at 12.21; GT +1.12% at 3.41.

Topic of the Day: Polygon PoS Developers Unveil Plan for Hard Fork to Tackle Gas Spikes and Chain Reorganizations

The developers at Polygon PoS blockchain have proposed a hard fork software upgrade to address gas spikes and enhance security of blocks on the sidechain network.

The upgrade, planned to take place on January 17th, aims to reduce the impact of transaction fee spikes and chain reorganizations, thereby improving Polygon’s performance and security.

The hard fork will focus on preventing reorgs and reducing gas spikes.

Preventing reorgs will be achieved by implementing measures to help reduce the amount of time it takes for block finality with regard to verifying successful transactions.

Reducing gas spikes will be achieved by changing the “BaseFeeChangeDenominator” to 16 from 8 to smooth out the rate of change of the base fee, leading to better experience when interacting with the chain.

This is all part of a broader initiative to give the Polygon side chain a technological facelift with parallelization and Polygon zkEVM. This upgrade is poised to make the network more robust and give users a smoother experience when interacting with the chain.

🌐 Polygon (MATIC) $0.910 (+1.69%) - Bullish Outlook 🐂

MATIC Overview:

Closest daily support zone: 0.9295 - 0.8973
Closest daily resistance zone: 0.9471 - 0.9600
Key Level: 0.9470 (Monthly High of Apr. 2021)

MATIC has seen a near 16% rise in 6 consecutive trading days but is trading at a 62% discount YTD. The extended trendline measured between the closing price of Dec. 12, 2021, and Nov. 07, 2022, indicates a breakout attempt will be coming to MATIC within a month. For now, the safest entry is around 0.8763, so that a 6% SL can be placed below to allow maximum fluctuation in price action with a 43% target, thereby generating a 7:1 profit-to-loss ratio. However, ideally, traders should wait for the breakout.: Chart Link

MATIC Daily Resistance zones

0.9471 - 0.9600
0.9807 - 1.0067
1.0084 - 1.0062

MATIC Daily Support zones

0.9295 - 0.8973
0.8764 - 0.8551
0.8322 - 0.8208

If you’d like us to cover any specific token or macro data, feel free to reach out to us by dropping a message in our Reddit community.

Notable headlines

🔹 In his latest Ask Me Anything session on Reddit, Bill Gates weighed in on the future of technology, stating that AI is at a similar stage now as the internet was in the early 2000s. He downplayed other technologies such as crypto and the metaverse.

🔹 Cathie Wood, Founder and CEO of Ark Invest, stated that equity markets have “largely ignored” game-changing innovation last year including blockchain technology and digital wallets. She also revealed that her funds have bought Coinbase shares for two days in a row.

🔹 Sam Bankman-Fried, founder of FTX, may be facing millions in legal bills as he faces a criminal trial, the wide-ranging FTX bankruptcy, and civil enforcement cases from regulators. He is likely to rely on friends and family to fund his defense.

🔹 Alameda liquidators have been consolidating funds from Alameda wallets into a single wallet, liquidating an on-chain position for $72,000.

🔹 The SEC charged both Gemini and Genesis with unregistered offering and sale of securities to retail investors, some of whom were in the U.S. This comes amid a public fight between the leadership of the two companies, which already ended their partnership on the program under scrutiny.

🔹 The Bank of International Settlements (BIS) suggests that authorities can take three different approaches when it comes to crypto following a particularly turbulent year: Regulate, contain or call for a complete ban of the sector.

🔹 Coinsquare and WonderFi are in advanced merger talks, BNN Bloomberg reported. A successful merger would make the new company the largest crypto exchange in Canada.

🔹 Crypto lender Nexo’s Bulgaria outpost was raided by local police. Authorities will carry out investigations into suspected money laundering and tax violations.

🔹 The InterPlanetary File (IPFS) released its new browser extension “Pin Tweet to IPFS,” which allows users to archive tweets.

🔹 Unstoppable Domains has just made it possible to connect your digital avatar to your web3 domain name identity, thanks to their new integration with avatar platform Ready Player Me. This is a game-changer as interest in using web3 domain names as a form of persistent identity online is rapidly growing.

🔹 StarkWare has just released Papyrus, an open-source full-node client for StarkNet, that will help improve block production capabilities and overall performance.

🔹 A new collection from former U.S. President Donald Trump has just launched. With the option to purchase NFTs that include a one-on-one Zoom meeting with Trump, a gala ticket dinner, and more, the collection has already amassed $48,500 in trading volume on OpenSea.

Author: Peter L., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

*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.

แชร์