Overview
- UN: “Stop aggressive QT!”
- Markets enter October in a positive fashion.
- Federal agencies are pushing Congress for crypto regulations.
- NYDIG buys $720m bitcoin.
- David Bowie NFTs sell for $127,000.
Good morning Banter Fam,
A scenario we covered in yesterday’s newsletter came to fruition hours later.
A United Nations (UN) agency warned of a global recession if central banks continue excessive monetary tightening, leading to stagnation and economic instability for many countries.
The report, titled “The Trade and Development Report 2022,” essentially calls “mercy” to central bankers on behalf of the world’s economy and asks countries to consider other solutions.
Unfortunately, developing countries are the first to feel the effects of QT because of high debt-to-revenue ratios, but the drying liquidity expands further. The rest of the globe is beginning to feel the pain in various forms, as covered in yesterday’s newsletter.
How will the Federal Reserve react when pressured by the UN to slow down hikes?
It’s hard to see a scenario where the FED continues aggressive hikes at the expense of the global economy, and the report increases the chances the Fed begins exploring a slowdown. There’s always the possibility the Fed will start accepting heightened inflation levels to stabilize a deteriorating situation.
Market update 🌍
BTC/USDT 1D
BTC showcased a modest rally today, coming off the $19.2k support level. Price continues to range sideways towards the significant down-trend resistance (red). The consolidation in price could foreshadow an explosive move in the coming days to weeks. Be on the lookout for a significant fundamental catalyst for an indication of direction. BTC completed the daily candle up +2.99% to $19,628.
High-resolution chart
XRP/USDT 1D
With Ripple’s court case versus the SEC continuing to wind down, XRP’s price is setting up a bull flag pattern. The pattern represents a pause in bullish price action as traders begin accumulating a larger position before further upside. Watch for a decisive break in the upper resistance, supported by increased volume levels, to confirm the pattern. XRP completed the daily candle +3.03% to $0.46.
High-resolution chart
| US markets close | Gain/Loss |
| S&P 500 | +2.59% |
| Nasdaq | +2.91% |
| Dow | +3.07% |
| VIX | -4.81% |
Notable Gainers (24h):
| Protocol (Coin) | Price ($) | Gain (%) |
| Evmos (EVMOS) | 1.57 | +9 |
| Uniswap (UNI) | 6.73 | +8 |
| THORChain (RUNE) | 1.62 | +7 |
| Elrond (EGLD) | 52.23 | +7 |
| Ethereum Name Ser (ENS) | 15.37 | +6.6 |
| Ergo (ERG) | 2.79 | +14 |
| COTI (COTI) | 0.12 | +13 |
| Polymath (POLY) | 0.26 | +12 |
| Bitcoin Fear and Greed Index | 20 Extreme Fear |
| “Crypto” Google Trends 90d | 47 |
| “Bitcoin” Google Trends 90d | 54 |
Newswatch 📰
Give us more oversight, Congress! A 125-page report released by the Financial Stability Oversight Council (FSOC) warns of the dangerous lack of oversight in crypto and asks Congress to settle on which agency will oversee trading. The recommendations, led by Treasury Secretary Janet Yellen, look to support two bills that would put the Commodity Futures Trading Commission (CFTC) in oversight of spot trading, and another that lays out regulations for stablecoin issuers.
NYDIG buys $720 million Bitcoin. According to a filing with the Securities Exchange Commission, New York Digital Investment Group (NYDIG) purchased the Bitcoin for its Institutional Bitcoin Fund. 59 investors contributed to the fund. NYDIG is an institutional-grade financial firm focused on Bitcoin and high tech.
News tidbits:
- a16z leads a $40m funding round for data protocol Golden.
- A Citi report says Decentralized Crypto Exchanges (DEXs) are gaining market share from centralized exchanges.
- The Sushi community votes in favor of “Head Chef” Jared Grey to oversee the DEX.
- BitMEX to launch token this year.
- Kim Kardashian has been charged $1.26 million by the SEC for “unlawfully touting” a crypto security”.
NFT & metaverse update 🐵
- A One-of-One NFT from ‘Bowie On The Blockchain’ hosted by The David Bowie Estate and Opensea, and benefiting CARE, has sold for 96.5 ETH ($127,000).
Banter’s take
It’s been a pretty good start to October. Prices appear to be rebounding off support lines, and the UN is now placing pressure on the US Federal Reserve to stop the aggressive rate hikes causing widespread damage to global markets.
The Fed will have to maintain its rhetorical stance, but when push comes to shove, it might have to abide before the US becomes the scapegoat of a global financial meltdown.
As for trading, I’m in no rush to trust the validity of retracements just yet.
Gabri
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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.
