Main Takeaway: Red Day, Every Day
Over the past 24 hours, we saw again some of the largest daily declines in the crypto markets, with Bitcoin and Ethereum currently trading 5% and 8% lower than yesterday. However, at one point they were both down over 15% – reaching new lows of $20,900 and $1,090 respectively. But by late evening Singapore time, the markets have started recovering from their daily bottoms, with particular smart contact coins such as Cardano, Solana, and Polkadot gaining back some losses.
Key Stories: Where’s The Bottom?
During the latest drop under $21,000, many Bitcoin analysts have pointed out the 200-week moving average as a potential bottom signal. The asset has also just dropped below the realized price. Although it’s hard to identify the proper indicators, these two show at least some positive signals. However, with macro conditions as negative as they are right now, it’s impossible to predict a bottom.
Investor Insight: Watch The Economy
Right now the best signals crypto investors can follow are those coming from the real economy and what the US central bank plans to do with regard to hiking rates. But there are other economic indicators to follow such as supply chain disruptions, the US Dollar surging, yield curve inverting, US consumer sentiment, and commodities. The news cycle in crypto has been largely negative, with whispers of regulatory actions, hacks, and projects getting liquidated.
The Good News: Today’s Top Gainers
After yesterday’s collapse, some smart contract platform cryptocurrencies suddenly jumped multiple percentage points. So for those looking to increase their portfolio allocation of smart contract tokens, then Cardano, Solana, and Polkadot are the three to follow. Also, given the market conditions, saving money and earning interest on stablecoins is the safest bet. For that Phemex has a newly revamped Earn Crypto program.
