Main Takeaway: Markets Neutral To The Green By 1%
Markets have held firm against the recent price action dropoff that caused the market to fall back close to the $1 trillion mark. As said before, the primary market drivers at the moment are the Fed’s future actions towards the US economy, the dire economic situation in Europe with regard to rising energy prices, and continued bearish charts in crypto. August was a bad month for crypto that failed to break out of June and July lows.
As you can see in the chart below, we’re still above the lows in June, but generally speaking, there’s not enough momentum and strength in the market for a true breakout.
That’s why September will be so crucial. Going by historical numbers, September is a bearish month for Bitcoin.
So depending on what actions the Fed will take in tackling inflation, seeing how the economic situation in Europe plays out (which represents 25% of S&P earnings), and getting more clarity on China, Japan, Korea, and Southeast Asia’s Q3 economic outlook – will we get a more precise understanding of what direction crypto will go.
But for now, as the Northern Hemisphere moves into fall and winter, the global economic situation and hence, risk-on assets will likely continue to face pressure.
Key Stories: Countries Continue Forward With Digital Payments Services
The Qatari central bank has just approved a license for digital payments, another move that continues to become the norm in the Middle East with regards to building out the infrastructure and legal framework for digital payments and Fintech writ large.
Although still in the early stages of this process, it does signal that all over the world, countries and their central banks continue to remain bullish on digital payments. However, until there’s more clarity on if and whether that includes cryptocurrencies and stablecoins, these announcements will have minimal impact.
Second, Texas Senator Ted Cruz posted on Twitter about a recent visit to a Bitcoin mining facility in Texas. Surprisingly, Ted Cruz has been one of the most outspoken US politicians when it comes to supporting various cryptocurrency industries, in particular mining. This is because Texas is an excellent state for this industry due to various tax laws, energy prices, and a regulatory environment that favors entrepreneurship.
The takeaway is US politics moving closer to cryptocurrencies and the crypto mining industry at large may be one of the few bullish adoption indicators of 2022. US Midterm elections will be an opportunity for US voters to get a better understanding of their local politicians’ acumen and opinions towards crypto.
Today’s Top Gainers
The top five performing cryptos on Phemex d-o-d are StepWatch (SWP/USDT), Nexo (NEXO/USDT), Lido Dao (LDO/USDT), Terra Luna Classic (LUNC/USDT), and Bounce (AUCTION/USDT).