Crypto Continues Up as Inflationary Pressures Increase! | Daily News 15/7/22

⏫ We’ve seen another surge in the cryptocurrency market in the past 24 hours, where it seems (for now that is) that a decreasing correlation with stocks could give cryptocurrencies further momentum; standing behind the narrative that Bitcoin could be that hedge against inflation that we explained in yesterday’s market analysis. Of course, we would need to see this narrative grow over time ⏳ before we could say such bold statements!

📊 Stocks ended the day mixed yesterday with the S&P 500 down -0.6% and the Nasdaq up 0.76%, while oil and gold continued to drop slightly. The DXY is up again, continuing its strength, hitting levels of 109.3. All this while, Bitcoin crept up to higher levels 📈. Interesting times ahead.

Let's look in more detail 👇

🟢 Bitcoin (BTC) was able to push up to even higher levels yesterday, currently in its 3rd day in a row in the green! The value of BTC as of writing is just over $20,600, up over 3% in the last 24 hours after almost reaching those highs of 💪 $21K!

As you can see in our NAGAX chart 👇 below, the price is now hovering around the immediate resistance point of $20,660. If the bulls can keep this momentum going, then we could see BTC push higher ⤴️, back closer to the $21K mark! We have drawn a bullish trend line that has formed on the hourly chart, to also help us see the current state of the market, but be aware these lines as always, are temporary! They hold true until they don't! On this upside momentum, BTC is also over the 100 moving average now that it was battling a bit yesterday.

But if we are to see the bears regain control and selling pressure make a comeback 📉, then we would have to break the next main support of $20,274 before eyeing up 👀 that heavily regarded $20K mark.

The hourly BTC/USDT chart shows more upside price action. Can it continue? Or just a stop-out?

The pump ⬆️ we saw in Bitcoin yesterday was initiated once again on the economic data 📋 release of the PPI as well as unemployment claims. The conclusion to this data 🕵 shouldn't have favoured Bitcoin’s price if history (at least, as of recent) was to repeat, hence the idea that people may now be considering Bitcoin really to be an inflation hedge as per its original narrative! Of course, one can not be certain of this, as only time 🕰️ will provide the answer over the long term.

🍾 As for the altcoins, Ethereum (ETH) did very well in the last 24 hours, currently valued at just over $1200 as of writing, having increased over 9%! Not bad at all for crypto’s second in command right? 🎖️

🟢 Of course, most altcoins are in the green right now with Uniswap (UNI) up over 13% in the last day, after being added to the broker Robinhood’s 🏹 listings. Aave (AAVE) has performed even better, currently valued at over $92 which is a 16.5% increase over the last 24 hours!

Polygon (MATIC) also did very well yesterday, spiking up ⤴️ 19% at one point after the news that they were selected to participate in 🏰 Disney’s 2022 Accelerator program. More signs of mass adoption? 🤷‍♂️

🕵 Of course we had pretty substantial data 📝 released yesterday that had an effect on the market. The first is the Producer Price Index (PPI). The results of the PPI showed an increase of 1.1% after the previous month of 0.8%. The core PPI (which excludes food & energy) was down from the previous month by 0.5% to 0.4%. These producer prices in June surged up 11.3% versus a year ago as energy prices have jumped 🤾‍♂️, adding to the worries of aggressive rate hikes. 🥺

📝 We also had unemployment claims data released showing that they have climbed up to the highest levels 🔺 we have seen since November, as total filings for unemployment benefits rose by 9000 from the previous month 🤯 to a total of 244,000. This rise in unemployment claims comes as more companies announce job cuts within this increasing fear of a recession. According to the data we have gathered so far this week, we gather that it indicates inflationary pressures are still elevated!

🗣️ Of course, finally we should mention that yesterday Federal Reserve Governor, Christopher Waller, said he supported an interest rate hike of 75 basis points (0.75 percentage point) in July, easing fears of a larger 100 basis-point raise to combat high inflation. But an increase to the 100 basis point would not surprise us at this rate! 🤷‍♂️

🤔 Why is all of this important you may ask? Well, the world has seen cryptocurrency formulate a correlation with stocks and the global markets and we have seen as of late, more than ever that Bitcoin can be subject to global macroeconomic data. Of course, as we mentioned earlier in this article, we could finally start to see the break of this correlation, and see Bitcoin’s original narrative start to unfold once again! 🏆

⚠️ Today, we have retail sales, manufacturing index as well as preliminary consumer sentiment to look out for. A big day for economic data, so it will be interesting to see how they affect the markets in general.

📺 Oh, and did you catch our yesterday’s NAGAXpert Market Analysis video on YouTube? I breakdown yesterday's price action 🤳 including technical and fundamental analysis with some on-chain and macroeconomic data and more! Go give it a watch 👀 and a like 👍 if you haven't seen it already, and please give us a comment 💬 to let us know what you think of our new format!

Summary:

• Bitcoin increased in value once again, showing more bullishness despite an otherwise bearish global market.
• Altcoins followed Bitcoin’s price action closely.
• However, stocks produced neutral mixed results.
• The PPI and unemployment data were released yesterday indicating inflationary pressures are still up!
• New format NAGAXpert Video, bringing you an up-to-date crypto market analysis. Be sure to check it out on our YouTube Channel!

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