Yesterday, a bearish morning saw the crypto market fall to a mid-day low of $872.4 billion. Today, the crypto market has rallied to a high of $936.06 billion and its trading volume is up 39.41% to $46.29 billion, at the time of writing.
Over 24 hours, total liquidations jumped as investors got caught out by a breakout crypto session. At the time of writing, 24-hour liquidations stood at $81.39 million, up from $22.82 million on Sunday morning.
Equity markets closed last week with a rare upswing, with the tech-focused Nasdaq and S&P 500 rising 2.3%, respectively on Friday, and the Dow Jones Industrial Average (DJIA) climbing 2.4%, despite a declining yen and ongoing political turmoil in the U.K.
US Treasury Secretary and former Fed Chair Janet Yellen recently looked to ease market stress over inflation, saying there was no evidence of inflation becoming embedded in the US economy - a sentiment shared by FOMC members. This eased bets of a 75-basis point rate hike in December and looks set to deliver a three-day winning streak for the crypto market, the longest since mid-September.
What you need to know
Last week’s late rebound will face a test this week as nearly one-third of listed companies in the S&P 500 will announce earnings. If the U.S. really is at the beginning of a recession, missed earnings will be an early warning sign that will shake the markets.d
Economic data could deliver policy uncertainty with the FOMC in its blackout period until November 3. Upbeat headline and sub-component numbers could refuel expectations of a 75-basis point hike in December, and affect crypto prices.
Today, investors are paying attention to Q3 GDP numbers from China and US PMI figures for October. We also expect the NASDAQ 100 Mini to set the tone this week, and continue its correlation with the crypto market.
The slide in expectations of a hawkish December move suggests a bullish start to the week, though the markets will need to navigate the stats from China