Cryptocurrency market capitalization is currently reflecting an increase of 1.24%, hitting a whopping $1.035 trillion as of September 14, data derived from TradingView suggest. This surge can be largely credited to the gains seen by leading cryptos such as Bitcoin, Ethereum, and Solana, possibly resulting from the latest inflation data and speculation around a potential halt of interest rate hikes by the Federal Reserve this September.
The uptick in the crypto world arrived just as the Labor Department shared the Consumer Price Index’s leap of 0.6% in August, a figure higher than anticipated. However, the core inflation rate, which excludes volatile food and energy sectors, reported a mere 0.3% increase, hinting at an overall easing of price pressures. As a result, investors are now prioritizing a 97% likelihood of the Federal Reserve maintaining the current rates in the upcoming September 20-21 assembly. Some claim that eased concerns surrounding the FTX bankruptcy fallout may bolster the crypto recovery further.
However, a section of expert technicians pointed out that until the crypto market cap surpasses its 50-day moving average, currently around $1.08 trillion, the potential for further upside may remain limited. There’s a risk of a looming downturn towards the $980-995 billion range if it fails to breach that technical marker. While a fed policy outlook and limited impact from the FTX scenario seem to boost crypto prices temporarily, maintaining the rally may need firm evidence of continued moderation of core inflation to the central bank’s 2% goal.
What’s also intriguing is that the crypto market remains highly subject to fluctuations in interest rate expectations and macroeconomic uncertainties. Amidst a more broad-based cryptocurrency market rally, various other cryptos such as Hedera, Wall Street Memes, THORChain, Bitcoin BSC, and Curve DAO are also registering gains, thanks to their solid fundamentals or promising technical analysis.
Hedera (HBAR), for example, is showing signs of a bottoming out with a 4.44% increase to $0.0518 so far. This climb above the 20-day EMA at $0.0511 is a positive sign for potential trend reversal. Key metrics such as the RSI and MACD histogram are leaning bullish, indicating HBAR might soon retest the overhead resistance at the 50-day EMA of $0.0532.
Despite certain skepticism, there’s a staunch belief that even meme coins like Wall Street Memes ($WSM) could result in significant investor wealth given the right fuel for hype. Dogecoin and Shiba Inu are prime examples of this potential.
One can’t overlook the recent launch of Bitcoin BSC (BTCBSC), a new project seeking to offer an improved Bitcoin experience on the smooth, user-friendly Binance Smart Chain. Echoing Bitcoin’s early days, BTCBSC proposes super-fast and cost-effective transactions with the same fixed supply of 21 million tokens. Moreover, it rewards token holding by offering a quicker, energy-efficient alternative to Bitcoin mining.
Alternatively, there’s the Curve DAO (CRV), currently exhibiting early signs of a potential bullish rebound. Even though there’s been heavy bearish momentum over the last two months, indicating critical factors like the RSI and MACD histogram diverging positively from price present a silver lining.
Small or significant, every development counts in the world of cryptocurrency. Keeping a close eye on these trends and adjusting investment strategies accordingly is paramount for every investor.
Source: Cryptonews
