Overview
- Macro rules the markets.
- Markets: ETH continues to rally, and BTC pauses.
- Binance to stop support for USDC.
- Elrond introduces NFT marketplace.
Good morning Banter Fam,
Macroeconomic events have been the main price driver for nearly all assets since the beginning of summer, and every day there seems to be another negative update.
Behind a quiet day in crypto, let’s move our focus to macro for this newsletter so we can explore some major macro events that could affect crypto prices.
Yesterday, in response to EU sanctions, Russia shut down the Nord Stream 1 pipeline, one of Europe’s largest sources of natural gas. As a result, prices for natural gas in Europe and the UK have spiked. With winter around the corner, the worries are beginning to mount. Adding to the anxiety, inflation is at record levels in the EU, and the ECB has only started making rate adjustments.
With trouble mounting across the economic world, there’s been a significant flight of safety into the US dollar, reaching a 20-year high. Higher USD usually equals cheaper equities (including crypto).
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Last but not least is the emerging signs that the US housing market has begun to crack. With cheap Fed Funds came a plethora of buyers during the pandemic, but the well of buyers may be finally running dry with an overabundance of housing supply.
The macroeconomic signs look troublesome, and the markets may hold more pain ahead.
But a glimmer of hope shimmers in a former Pantera Capital report, “The Fed’s Twin Policy,” released two months ago. The report predicted that any asset tied to Fed funds would begin to suffer (stocks) while assets such as commodities, gold, and crypto would start to rally. Why? Because of the lack of debt these assets encompass, which is quite the opposite for equities.
Let’s hope the Pantera Capital thesis is correct!
Market update 🌍
ETH/USDT 1D
Ethereum (ETH) continues a nine-day rally, a week and a half before the merge. After hitting a low of $1,425 on August 28th, ETH has since climbed to a high of $1,620. Although, the RSI has reached an overbought level that suggests buyer exhaustion. ETH is between a $1,420 support and $1,750 resistance. It closed the daily candle up 2.36% to $1,616.
High-resolution chart
BTC/USDT 1D
Bitcoin continues to struggle below $20k while ETH continues to roll. The tight price range on the 4-hour chart appears to have set up a triangle pattern often confirmed by an aggressive breakout; the breakout can occur in either direction. Will BTC continue to lose ground to ETH? BTC completed the daily candle down -1.30% to $19,796.
High-resolution chart
| US markets close | Gain/Loss |
| S&P 500 | *Market Closed Holiday |
| Nasdaq | |
| Dow | |
| VIX |
Notable Gainers (24h):
| Protocol (Coin) | Price ($) | Gain (%) |
| Ethereum Classic (ETC) | 41.39 | +28 |
| Bitcoin Gold (BTG) | 26.07 | +15 |
| DeFiChain (DFI) | 1.36 | +15 |
| Ravencoin (RVN) | 0.03 | +14 |
| Synapse (SYN) | 1.63 | +26 |
| Ergo (ERG) | 5.07 | +17 |
| Flux (FLUX) | 1.33 | +13 |
| Bitcoin Fear and Greed Index | 22 Extreme Fear |
| “Crypto” Google Trends 90d | 64 |
| “Bitcoin” Google Trends 90d | 24 |
Newswatch 📰
Troubles a Poolin. Poolin, one of the largest bitcoin mining pools, suspends withdrawals to stabilize liquidity. The CEO, Kevin Pan, told users that the funds are safe and that debt may become part of the strategy to solve the liquidity problems.
Binance to stop USDC support. The crypto conglomerate, Binance, announced it would stop supporting USDC, the second-largest stablecoin in crypto, on its trading platform. Instead, Binance plans to switch all USDC, USDP, and TUSD into its native stablecoin, BUSD. Binance says it’s making the switch to improve liquidity for clients.
Vasil Fork Date. Cardano builders, IOHK, have confirmed September 22nd for the much-awaited Vasil fork upgrade, which increases network capacity and lowers transaction costs.
News tidbits:
- Australian Federal Police form cryptocurrency unit to fight laundering.
- Binance hires former Brazilian central bank president, Henrique Meirelles.
- Meta acquires Lofelt, a Berlin virtual reality startup that aims to replicate the illusion of touch.
NFT & metaverse update 🐵
No-code NFT store builder. Niftify releases a first-of-a-kind, no-code NFT store, and marketplace builder. The service allows clients to build an NFT marketplace without worrying about compliance, licensing, and regulations.
Elrond’s NFT marketplace. The Elrond blockchain introduces “Inspire: The Web3 Culture Hub”, an NFT marketplace.
Banter’s take
The Merge, The Merge, The Merge!
That’s been all the talk on crypto Twitter (CT) lately. Many believe it’s one of crypto’s most significant structural changes, while others think it’s overhyped.
With The Merge nine days away, one thing is for sure, Ether (ETH) prices will go wild, and many traders will get wiped out trying to get fancy. So try not to be one of them.
So hold on tight; it will be a fascinating two weeks!
Gabri
Follow me on Twitter for daily updates!
Disclaimer
Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
