Market Recap: Bitcoin Finds New Ground, Stocks Rise on Earnings

Stocks leveled out after major sell-off as investors prepared for rate hikes. Are further sell-offs to come or have rate hikes been priced in?

article-image

Source: Shutterstock

share

key takeaways

  • Bitcoin has flipped its previous resistance into a support line, signaling that sentiment has shifted back to the positive
  • The number one digital asset went as high as $45,400 and has since settled near $43,450

Bitcoin flips resistance into support

Bitcoin has pushed its way back up and through a resistance level of around $42,500. The crypto went as high as $45,400 and has since settled near $43,450. Ether has followed a similar trend by breaking through and holding above the resistance level of $3,000.

After the pump of the last few days, major cryptos like bitcoin and ether have settled back down and created a support line of previous resistance. This paints of picture of positive near-term sentiment in the digital asset markets.

[stock_market_widget type="accordion" template="chart" color="#5679FF" assets="BTC-USD,ETH-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="5d" chart_interval="1d"]

Adding to the positive sentiment was largely positive US House Financial Services Committee's hearing today on stablecoin regulations. Nellie Liang, undersecretary of the Treasury for domestic finance, testified during the hearing that stablecoins would not compete with the dollar or a CBDC (central bank digital currency) issued by the Federal Reserve.

"It is important to preserve the value of the dollar. I believe stablecoins that are stable, and can deliver a stable value tied to the dollar, would be would benefit the US dollar," said Liang.

"In my view, regulating stablecoins to the dollar does not in any way, preclude anything with respect to the introduction of the CBDC. It is hard to know what the future will look like, but one could imagine they could coexist," said Liang when talking about CBDCs and privately issued stablecoins existing alongside one another.

Generally positive earnings

Good earnings reports seem to have helped investors forget about incoming rate hikes. The S&P 500, Nasdaq and Dow rose on the day as earnings reports have largely been positive even with outliers like Meta and PayPal trending downward.

The S&P 500 rose by 37.67 points or 0.84%. The Nasdaq increased by 175.79 points or 1.21%, and the Dow rose by 371.65 points or 1.06%.

[stock_market_widget type="accordion" template="chart" color="#5679FF" assets="^GSPC,^IXIC,^DJI" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="5d" chart_interval="1d"]

Top stories

Story: Couple Arrested as Government Recovers $3.6B in Stolen Bitcoin

  • If convicted, both crimes carry a total maximum sentence of 25 years in prison.
  • It’s the department’s largest financial seizure ever, Deputy Attorney General Lisa Monaco said in a statement.

Story: Web3 Startup Alchemy Raises $200M to Fuel Blockchain Development

  • In under four months, Alchemy valuation has jumped 191% from $3.5 billion to $10.2 billion.
  • Over $105 billion in annualized on-chain transactions have been powered by Alchemy to date, up 133% from $45 billion in October.

Story: Andrew Yang: We Must Avoid Politicizing Crypto, Web3

  • Perception of the digital asset space must move beyond “a bunch of crypto bros who are speculating,” according to Yang.
  • The Forward Party, a political action committee that the former Democrat created in October, is seeking to become the movement that helps mainstream crypto technologies.

Story: Sovereign Wealth Fund Vet Eyes $150M for Crypto Fund of Funds

  • Before forming Nural, Rabia Iqbal worked for Mubadala, Coatue Management and Morgan Stanley.
  • The fund of funds plans to back both crypto and venture capital managers, as well as investing directly in tokens and equity plays.

Going forward

Investors seem to have been attracted back to the markets by positive earnings reports which have reduced the amount of fear and uncertainty in the market. Federal Reserve Gov. Michelle Bowman is scheduled to speak tomorrow at 10:30 am EST, followed by Cleveland Fed President Loretta Mester at 12:00 pm EST. These events could have some effect on tomorrow's market movements.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member