Cryptocurrency

The crypto market looks to be unraveling as panic sets in

Russell Shor Written by Russell Shor


The bitcoin price has collapsed and is nearing our initial target of $25,000. We note that we amended our measured move in an article yesterday, which is even lower. We cannot guarantee that bitcoin's price will meet our targets due to the constant flux in economic expectations to changing variables. However, it is safe to say that we are concerned that cryptocurrency prices have a bias to the downside - bitcoin is down over 20% for the week alone.

Participants will be concerned with yesterday's CPI numbers, higher than the consensus, as the Fed's aggressive tightening of policy is a headwind for the crypto market. Moreover, the savage capitulation of the stablecoin TerraUSD (UST) has enormously affected sentiment. This loss of confidence is understandable. Firstly UST was meant to have a one-for-one peg with the dollar. But, on the other hand, Luna, connected by algorithms to UST, has dived 93% since its close yesterday.

The situation is not helped by Coinbase (COIN), which the market has hammered. The crypto exchange's CEO tweeted yesterday that there is "no risk of bankruptcy." However, the suggestion that customer assets may lack bankruptcy protection, muddies the clarity of the tweet.

References:
wwww.marketwatch.com

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Learn More
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.