As a seasoned trader with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends that have shaped my understanding of price behavior. Today, let’s delve into three intriguing cryptocurrencies – WIF, Bittensor (TAO), and Ripple (XRP).
Cryptocurrency markets continued to show optimism, as most significant digital currencies experienced substantial gains yet again. The worldwide crypto market saw another rise of approximately 3.06%, bringing its total value to around $2.21 trillion. Bitcoin (BTC) has risen more than 3%, and Ethereum (ETH) is still on an upward trend, with a nearly 6% increase over the past day, surpassing the $2,500 mark.
Other significant digital currencies that have seen a rise in value are Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Toncoin (TON), Polkadot (DOT), FET, and Bittensor (TAO). As per experts, the rate cut by the Federal Reserve has boosted the overall investor sentiment, making them more inclined towards riskier assets like cryptocurrencies. This increased interest from both retail and institutional investors is contributing to the growth of these digital currencies.
Impact Of The Federal Reserve’s Rate Cut
Chris Aruliah, the head of institutions at Bybit, expressed his views on how the Federal Reserve’s interest rate reduction might influence the cryptocurrency market. Bybit is a globally recognized platform for trading digital assets, catering to both retail and institutional users in this sphere. During the discussion, Aruliah pointed out that historical trends suggest an increase in capital investment from banks towards riskier assets like cryptocurrencies following rate cuts. He further suggested that this rate cut could potentially boost markets, leading investors to adopt a more diverse approach when making investments.
Historically, reducing interest rates has frequently triggered banks to pour more money into the stock market, as lower rates make riskier assets like digital currencies more appealing due to reduced returns from conventional investment options. We believe that the recent rate cut could boost investor confidence and motivate both individual and institutional investors to expand their portfolios by delving into and investing in cryptocurrencies.
Russian Finance Ministry To Tax Crypto Miners
Based on official reports, the Russian Finance Ministry is contemplating a new tax strategy for cryptocurrency miners. Instead of taxing them based on the value of their token sales, they might be taxed according to their electricity consumption. Initial reports suggest that this proposed tax system would function as a type of indirect tax specifically targeting the electricity costs associated with mining activities.
We continue to focus our efforts on taxing profits as a long-term aim. We believe that this is the appropriate approach, similar to other businesses. As an alternative, we’ve considered implementing excise taxes, but no final decisions have been made about such a system.
Despite the authorities viewing it as a temporary measure, Moscow is still grappling with finding an accurate way to determine profits due to creative accounting practices among miners. Russia’s Deputy Finance Minister Ivan Chebeskov has suggested that some miners might not disclose all their digital wallets, making it simpler to estimate power consumption than the value of cryptocurrency assets. He further mentioned that the Finance Ministry anticipates the parliament (Duma) to pass a law on crypto mining tax before the end of its autumn session.
Commerzbank Announces Partnership With Deutsche Borse’s Crypto Finance
As a researcher, I am excited to share that Commerzbank, one of Germany’s leading banks, has teamed up with Deutsche Borse’s subsidiary Crypto Finance. This collaboration aims to expand our crypto services, providing secure Bitcoin (BTC) and Ethereum (ETH) offerings tailored for corporate clients. The focus lies on streamlined trading and custody solutions, ensuring regulated access to these services and digital assets for select German-based clients. This partnership is a significant stride towards increasing institutional cryptocurrency services across Europe.
To start, this collaborative venture between us will primarily deal with bitcoin and ether, offering these digital assets to a select group of Commerzbank corporate clients based in Germany. Under this strategic alliance, Commerzbank will handle the safekeeping of these digital assets, while Crypto Finance will oversee their secure trading. This partnership gives Commerzbank’s corporate clients easy and secure access to cryptocurrencies, all while maintaining established and regulated frameworks and partners.
Bitcoin (BTC) Price Analysis
This week, Bitcoin (BTC) has shown an extremely optimistic trend. The positive vibe intensified after the Federal Reserve declared a 50 basis point reduction in interest rates. In the last 24 hours, BTC has surged more than 3%, and over the past week, it’s up by approximately 10%. Market bulls are largely in control, causing this significant upward movement. A well-known analyst has pointed out that Bitcoin is exhibiting a significant bullish sign, crossing above the daily Ichimoku cloud. The Ichimoku cloud is a technical analysis technique originating from Japan, which helps traders identify potential entry points by blending resistance and support levels.
Although the current outlook seems more optimistic compared to a few days back, it’s essential to note that the situation doesn’t definitively indicate a continued bullish trend just yet. A confirmatory bullish trend requires both a bullish cloud formation and a bullish crossover of the TK lines.
Observing the Bitcoin price trajectory, we notice a bullish trend this week, despite starting in the negative with a 1.69% drop on Monday, reaching $58,164. The market demand escalated at $58,000, prompting investors to take advantage of the dip and buy low. This action fueled a significant recovery on Tuesday, propelling BTC by almost 4%, surpassing both the 20-day Simple Moving Average (SMA) and $60,000 to settle at $60,321. Sellers attempted to push Bitcoin below the 50-day SMA on Wednesday but were unsuccessful as it bounced back, recording a 2.41% increase to reach $61,773.
On Thursday, Bitcoin peaked at $63,887 due to optimism following the Federal Reserve’s rate cut announcement. Despite efforts by sellers to hold the $64,000 mark, buyers found themselves momentarily restrained, resulting in a 1.84% increase to $62,912 at day’s end. Currently, Bitcoin is up 1.13%, aiming to surpass $64,000 and potentially reach $65,000. This week, buyers have dominated the market, as suggested by the rising price chart and the bullish MACD. If Bitcoin manages to break above its 200-day Simple Moving Average, a push towards $65,000 is likely, with further potential for $70,000. Conversely, if sellers regain control, Bitcoin could dip below $60,000.
Ethereum (ETH) Price Analysis
This week, Ethereum (ETH) surpassed $2,500 mark, showing signs of recovery from its previous lethargy. Globally, the second-largest digital currency has seen a nearly 6% increase in the last day and over 9% within the weekly timeframe. Interest in Ethereum Exchange Traded Funds (ETFs) like the iShares Ethereum Trust has also grown slightly but significantly, with inflows totaling $5.24 million. Initially in this week, ETH dipped below a critical level of $2,300 and ended at $2,296 on Monday. However, interest picked up on Tuesday, prompting attempts to push above the 20-day Simple Moving Average (SMA), but ultimately unsuccessful. In the end, Ethereum saw an increase of more than 2% to reclaim $2,300 and settle at $2,343.
On Wednesday, sellers tried to force ETH down below $2,300 again, causing it to drop to a daily low of $2,277. However, buyers stepped in and bought the dip, resulting in a 1.36% increase for ETH, which closed at $2,375 but failed to surpass the 20-day Simple Moving Average (SMA) or $2,400. This dynamic shifted on Thursday as ETH experienced a near 4% jump, breaking through the 20-day SMA and $2,400 barrier to close at $2,465. The bullish trend has continued in today’s session, with ETH breaching $2,500 and the 50-day SMA. It currently stands at $2,558 following an almost 4% rise. Buyers aim to push ETH up to at least $2,700 if they can make $2,500 a point of support. A break above $2,700 would boost buyers’ confidence, allowing them to target the $2,850 level.
Solana (SOL) Price Analysis
Solana (SOL) has seen a nearly 10% increase in the last 24 hours, thanks to the Fed’s rate cut decision. After a bearish close last week, SOL started this week with high volatility due to buyers and sellers battling for control. The $130 level was defended by buyers while sellers aimed to push SOL below it. Neither side managed to succeed until Wednesday, when sellers made another attempt to drive SOL under $130. However, increased demand at lower levels helped Solana rebound, surpass $130 again, and close the day at $134.
On Thursday, Solana (SOL) experienced a significant boost following the Federal Reserve’s decision to reduce interest rates by 0.5%. This surge propelled SOL beyond $140 and over its 50-day Simple Moving Average, marking an increase of 6.36% and ending at $142. Continuing its ascent in the current session, SOL has surpassed the critical $150 threshold, rising almost 6% to trade at $151. The growing institutional interest in Solana this month, coupled with the Fed’s rate cut, is fueling a substantial price hike, pushing towards $160 after breaching $150. However, SOL must conquer its 200-day Simple Moving Average before reaching that milestone.
In this current month, institutions have poured nearly $10 million into SOL following a rather bearish August. The week ending September 13 added an extra $3.8 million, suggesting that institutional investors are extremely bullish about Solana’s long-term prospects. Moreover, Solana’s broader market trend has strengthened, with the Chaikin Money Flow (CMF) indicator hitting its highest in over a month and a half.
Dogwifhat (WIF) Price Analysis
The Dogwifhat token, built on the Solana platform, has experienced a significant surge this week, with its sights set on reaching $2. This renewed interest in the asset has propelled WIF by more than 6% in the last 24 hours and an impressive 19% over the past week. As the meme token navigates within a broad trading range, it aims to break free and climb above the $2 mark as optimism resurfaces in the market. The weekly price chart indicates that WIF has been consistently trending upwards since the beginning of the week, with a slight initial rise on Monday. On Tuesday, buyers propelled WIF further upward, reaching $1.53, but failing to surpass the 20-day Simple Moving Average (SMA) threshold.
On Wednesday, WIF experienced significant downward pressure, reaching a low of $1.44. Yet, as prices dipped, demand increased, enabling buyers to regain control and push the price above $1.50 and the 20-day Simple Moving Average, closing at $1.62. After the interest rate cut, optimism returned to the crypto markets, causing WIF to increase nearly 10% on Thursday, ending the day at $1.77. Currently, WIF is up by almost 2% and trading around the $1.80 mark in this session.
From my perspective as a researcher, I’ve noticed that buyers have been trying to push the price up towards the $2 mark, but for now, they’ve encountered resistance due to active selling around the $2 level. If sellers maintain their current activity, there’s a possibility they could drive the price back down below $1.60. However, if buyers can sustain their momentum, it’s not entirely implausible that we might see a move towards $2 in the future.
Bittensor (TAO) Price Analysis
Over the last seven days, Bittensor’s Token (TAO) has experienced a significant jump of approximately 45%, setting it as the front-runner in the rise of AI tokens. Although Bitcoin has been dominating headlines, TAO’s remarkable growth has placed it at the top among all AI-related tokens. Interestingly, TAO began the week with a drop of nearly 5% on Monday but bounced back strongly on Tuesday, reaching a daily peak of $368 before a dip by sellers brought the price down. By Wednesday’s close, TAO was trading at $324, marking an impressive rise of 12.52%. Attempts by sellers to regain control on Wednesday were unsuccessful, and instead, buyers took charge, pushing TAO up to $337 following a gain of more than 4%.
On Thursday, a positive outlook about the market caused TAO to skyrocket by nearly 11%, surpassing the $340 mark and ending at $374. As of now in this session, TAO has climbed another 12% thanks to buyers, pushing its price over the $400 barrier.
Ripple (XRP) Price Analysis
Despite the crypto markets turning bullish this week, XRP has struggled as it trades between $0.55 and $0.60 and is witnessing significant volatility. XRP started the week on a positive note, registering an increase of 2.60% on Monday and settling at $0.59. However, with sellers active at $0.60, buyers lost steam, and XRP registered a marginal drop of 0.39% on Tuesday. Sellers attempted to drag XRP below the 50-day SMA on Wednesday, but with demand picking up closer to support levels, XRP recovered, registering a marginal increase to remain at $0.58.
For the second time around, purchasers failed to gain traction, with XRP inching slightly higher to reach $0.59 on Thursday. At present, XRP is experiencing a 0.73% rise, but buyers are finding it challenging to sustain momentum and break above the $0.60 mark.
Toncoin (TON) Price Analysis
As a crypto investor, I’ve noticed that Toncoin (TON) has surged beyond the $5.60 mark, a point previously acting as a robust resistance. Now, it’s aiming to surpass the 50-day Simple Moving Average (SMA) and challenge the $6 level, which promises tough opposition. Although the week started off on a down note for TON, it picked up momentum on Tuesday, inching up by a modest 0.56% to close at $5.50. The upward trend continued on Wednesday following a 2.29% rise, propelling Toncoin past the $5.60 barrier and settling at $5.63. With TON now above the resistance level, buyers have been attempting to push it beyond the 50-day SMA on Wednesday.
Initially, TON reached a peak of $5.82 but was halted due to rising selling activity that was spurred by the 50-day Simple Moving Average (SMA) serving as a significant resistance point. Consequently, TON ended up with a gain of 0.92%, closing at $5.68. At present, TON is experiencing an increment of more than 1.02% in the ongoing session, as investors are keen on pushing past the 50-day SMA. If it manages to surpass this barrier, a potential rise towards $6 could occur. However, whether TON can break these levels or not remains uncertain, as sellers are expected to put up a strong defense at both points.
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2024-09-20 13:06