Currently, government inflation and interest rate announcements seem to be the main driver of Bitcoin and Ethereum prices. It’s a cycle that the market has been locked into all year, with the 6-weekly meetings of the Fed being the main culprit.
The media are predicting ever-higher inflation numbers, and in turn, higher interest rates. Because crypto is what’s termed an on-risk asset, the threat of higher interest rates and their dampening effect on the economy tends to trigger a sell-off in anticipation of the Fed’s announcement. The Fed then release its commentary on the economy and its interest rate guidance. The market gets used to it, and prices adjust.
From a wealth-building point of view, what’s key to note is the influence government policy has on Bitcoin and Ethereum, just like the stock market. This intimate correlation with the wider macroeconomic environment we’re seeing, shows crypto’s growing role in the mainstream financial markets.
Bitcoin update
Bitcoin had a wild ride last week, starting with selling pressure pushing down to a low of $18,183 and then rocketing back up to a high of $19,947 within 14 hours. The price subsequently consolidated just above $19,000 at the weekend to return a small drop of -0.88% week on week.
Ethereum update
Ethereum (ETH) began the week in the red as the market de-risked ahead of key US economic data. Then, despite a better-than-expected figure, the market displayed little reaction (likely a result of the impending CPI release) which as we mentioned in the introduction to this newsletter is a strong market driver. In the hour prior to the release, ETH dropped as much as 6.6%, then following a better-than-expected figure, it made a rapid 12.93% gain. Following the strong move, the market experienced sideways price action for a weekly close at $1,305.8 for a -1.34% return week on week.
DACXI EVENTS
Understanding Global Crowdfunding: What You Need to Know
What could the next era in innovation funding mean for you?
Join us on November 3rd for an insight-packed fireside session on everything you need to know about the next stage in global crowdfunding, and what it will mean for the future of the innovation landscape.
You’ll learn:
- What is global crowdfunding?
- How will global crowdfunding work in the future?
- How will Dacxi Chain help lead this change?
Time: 7:00 pm AEST / 9:00 am BST.
Secure your spot here.
Dacxi Chain podcast
How can blockchain democratize innovation and solve the biggest challenges facing global crowdfunding?
We started a podcast to answer just that.
Hosted by crypto expert Andy Pickering, say hello to Unleashed. In our newest series, we connect with thought leaders from across the industry to discover how this technology is changing the world.
- Why the world needs the Dacxi Chain. In our debut episode, Ian Lowe dives into the potential of global crowdfunding and why a blockchain-based ecosystem will be a game changer. Listen here.
- The current state of early-stage funding. In this episode, we’re joined by Colin Kleine, co-founder, and CSO of Scalerr, an advisory company that helps tech start-ups scale globally. Andy and Colin discuss the economic benefits of a thriving innovation sector and how to maximize your value for money from investors. Listen here.
Tune in and let us know what you think!
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