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Merge

market-update

Independent ReserveMarket update

BTC A$32K. Ethereum Merge less than 48 hours away

After a lacklustre few weeks, Bitcoin suddenly shot up 10% on the weekend due to a reported short squeeze. MicroStrategy announced its doubling down again, major buying from whales, and positive signs on traditional markets. Bitcoin is trading just over A$32,200 (US$22.2K) to be up 7% for the week (though it’s still lower than mid-August). The impending Ethereum merge (Google has thoughtfully created a countdown clock) has the token trading flat for the week to sit around A$2,500 (US$1,720). Positive sentiment could come to a screaming halt with the imminent release of the US inflation figures this week and a possible "sell the news" reaction following the Merge. XRP was flat, Cardano (-5%), Solana (+7%) and Polkadot (-4%). The Crypto Fear and Greed Index is at 25, or Extreme Fear.

Market update

Independent ReserveMarket update

BTC A$32K. Crypto shake up. Market cap below US$1T

Bitcoin has stabilised by 4% in the past 24 hours, and finishes the week down 31% at US$22,150, or AU$32,060, which is roughly the lowest pricing since December 2020. ETH is down 35% this week and is trading around US$1,220 (AU$1,765). The macro picture looks bleak: May's inflation rate in the US topped 8.6% and there's speculation the Fed may hike interest rates by a whopping 0.75%. The S&P 500 is in a bear market, having lost more than 20% this year, and as a riskier asset class crypto has been hit even harder. The effects have been multiplied by the potential for lending platform Celsius to collapse and the possibility the ETH Merge may be delayed again. Everything has lost double digits: Cardano (-27%), XRP (-23%) and Polkadot (-20%). The Crypto Fear and Greed Index is at 7 or Extreme Fear. The overall market cap is at US$932 billion (AU$1.353T). With two weeks to go, this is shaping up as either the worst, or second worst quarter in Bitcoin's history.

Market update

Independent ReserveMarket update

BTC A$41K. FED starts process of Quantitative Tightening (QT)

Bitcoin's longest ever losing streak ended on Sunday with the cryptocurrency finally printing its first weekly green candle in 10 weeks. There’s now hope among traders that we’ve found the bottom and JPMorgan’s suggestion of a 30% upside for Bitcoin following the recent washout is right. However, Josh Olszewicz, head of research at Valkyrie Investments, thinks overall conditions aren’t favourable. “Uncertainty in the global economy due to high inflation and the likelihood we are in a recession, paired with the prevalence of central bankers raising rates, is likely going to force all assets downward at least through the end of the summer,” he said. The Reserve Bank of Australia is also widely expected to raise interest rates today. Bitcoin finished the week at AU$41,700 (US$29.9K) while Ethereum lost 11% to AU$2,450 (US$1,750). Cardano increased 1%, XRP fell 7%, Solana (-16%) and Polkadot was down 13%. The Crypto Fear and Greed Index is at 13, or Extreme Fear, up from 10 last week.