Main Takeaway: The US Dollar Reaches New Heights
The US Dollar posted a ‘god candle’ which saw its value increase against a basket of global currencies, reaching a new multi year high going back to 2003/2004. Generally, when the Dollar gains against other currencies it’s not a good sign for the global economy, and especially Wall Street in particular.
Putting this in the context of skyrocketing inflation in the Eurozone, dropping oil prices, rising interest rates, weakening demand, and falling stocks, there’s a lot of bearish news that may still bear on the crypto markets.
Key Stories: Singapore Regulators Step In
Yesterday, the Singapore central bank and finance regulator are considering the introduction of additional consumer protection safeguards for retail crypto investors. This is potentially a bullish signal long-term as the industry works its way into more acceptance and compliance with traditional finance.
This news out of Singapore comes off the heels of various EU crypto regulation proposals that include putting more strict requirements around stablecoins and virtual asset service providers such as exchanges. However, as the government generally moves slowly, further legislation surrounding NFTs and DeFi will probably come in later years 2023-2024.
As is usual, the United States is slowest to regulate emerging technology industries, so it will be interesting to watch the US political environment as well as a potential change in administrations if that will have any impact on cryptos, digital assets, CBDCs, NFTs, and the regulation of stablecoins and centralized exchanges.
Today’s Top Gainers
At the opening bell yesterday the US stocks were off to a slow start, but by mid-day and by the close they had ended in the green, but after close a slew of bearish news came in and swept the rug on any gains. And this carried over to the crypto markets. So d-o-d, the crypto market is down 1%, which as said before, confirms our previous prediction that we’re still in for more choppiness and potential downside.
Nevertheless, as always, there are select cryptos that pull through. The top five gainers on Phemex are TRVL (TRVL/USDT), Baby Shark BubbleFong Friends (BBF/USDT), Alpaca Finance (ALPACA/USDT), Crypterium (CRPT/USDT), and Convex Finance (CVX/USDT).
