Daily News | Bitcoin's Brief Climb to $25K Cut Short as US Fed Triggers Market Decline, Musk's Latest Meme Sends FLOKI Soaring by 200%
Crypto Daily Digest: Bitcoin Hits 6-Month High Before Brief Decline Amidst Interest Rate Talks by US Federal Reserve
Good morning, traders! It’s tIme to start prepping for the FOMC minutes coming out next week. Anyways, Let’s seize this Friday and make the most of it, and have a good weekend! 🚀
On February 16, discussions by US Federal Reserve officials about increasing interest rates by 50 basis points to address inflation caused Asian stocks, including Australian equities and Japanese futures, to decline. The S&P 500 Index and the Nasdaq 100 also decreased while the yield on the 10-year Treasury rose to its highest point this year. The rise in US producer prices further contributed to the negative sentiment, and Australian bond yields also increased. The Governor of Australia’s central bank stated that additional rate hikes would be necessary to control inflation. Investors now anticipate that the federal funds rate will exceed 5.2% in July.
During early trading in Asia, Bitcoin saw a decline after briefly reaching $25,000, and the US dollar strengthened. Bitcoin had reached its highest value in six months the day before and recorded almost 10% gains, with Optimism in the cryptocurrency market being buoyed by positive US macroeconomic trends and risk asset sentiment. Short-term treasury yields have led to an inflow of capital into the US, propelling both Bitcoin and the US dollar upward. However, some analysts are apprehensive about how long this situation will persist. Bitcoin whales have been noted taking advantage of these favorable market conditions, utilizing bids and asks to guide support and resistance higher.
Additionally, Ether, Dogecoin, Ripple’s XRP, and Polygon‘s MATIC also fell, and equities linked to cryptocurrencies lost steam. Noelle Acheson, a former head of market insights at Genesis, attributed the surge to lower stock and bond volatility, a weaker U.S. dollar, and lower oil prices. As a result, Bitcoin is now one of the most sensitive liquidity plays, having risen almost 50% since the beginning of the year.
Furthermore, oil continued its weekly descent, and natural gas in Europe approached its lowest level since November 2021.
Topic of the Day: Twitter CEO Floki? Elon Musk’s Latest Meme Sparks Cryptocurrency Gains
The recent surge in doge price following Elon Musk’s tweet featuring his Shiba Inu dog has attracted attention from traders and investors alike. This event highlights the influence of celebrity endorsements and social media posts on the cryptocurrency market, which can lead to significant price movements. The fact that Musk has reportedly had a sour relationship with the former CEO of Twitter and expressed interest in finding a new CEO for the platform may also have implications for the future of Twitter and its role in the cryptocurrency industry.
The rise in the price of Floki, named after Musk’s dog, also demonstrates the impact of community-driven initiatives such as token burns on the value of cryptocurrencies. By reducing the supply of tokens, such initiatives can lead to an increase in demand and thus boost the price of the cryptocurrency. This trend may incentivize other communities to undertake similar initiatives, potentially leading to more market volatility.
However, the historical LINK between outsized gains in meme coins and a market-wide sell-off suggests that caution is warranted. While DOGE has traded nearly flat in the last three months, investors should remain vigilant and keep an eye on market trends to avoid any significant losses. Overall, these recent events highlight the ongoing evolution of the cryptocurrency market, which continues to be shaped by a complex interplay of factors including social media, community-driven initiatives, and broader market trends.
Floki Inu (FLOKI) $0.00006400 (+15.31%) - Neutral Outlook
Overview:
- Closest daily support zone: 0.00585000 - 0.00569871
- Closest daily resistance zone: 0.00681406 - 0.00740231
- Key Level: 0.0074 (Weekly High of Sep. 27 - Oct. 04, 2021)
FLOKI saw a significant increase of 273% in January before retracing around 20% to the 61.8% Fibonacci level during the first week of February. Since Feb. 15 when Elon Musk tweeted a picture of his dog, FLOKI spiked another 200%. The collective irrationality of meme-based token investors simply cannot be explained by words, but one thing is certain, which is the speculative nature of this type of asset. Looking at the daily timeframe, the RSI is showing a bearish divergence at its current price. Meanwhile, the current peak is situated at a previous supply zone [0.0058500 - 0.00637875], and the current golden zone, also known as the 61.8%, is between [0.00445103 - 0.00389335].
Daily Resistance zones
- 0.00681406 - 0.00740231
- 0.00925881 - 0.00999231
- 0.01154012 - 0.01215640
Daily Support zones
- 0.00585000 - 0.00569871
- 0.00500871 - 0.00486689
- 0.00445103 - 0.00389335
