Cryptocurrency market on July 26: Bitcoin lost the 22,000 mark, the market was in the red

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2022-07-28 01:40:56

Bitcoin price on July 26 dropped sharply to $21,000 as Wall Street had a sideways price performance ahead of the meeting of the US Federal Reserve (Fed).

Cryptocurrency Market

Market data shows that Bitcoin has turned sharply lower, closing daily at $21,300 and now in danger of losing the $21,000 mark.

Bitcoin price chart July 26, 2022

The market is volatile before the US Federal Reserve (Fed) decides on interest rates on July 27. Umar Ashraf, founder of trading tool TradeZella, forecasts:

“The market is about to witness a volatile week. A lot of big names will release earnings with the FOMC starting on Tuesday, followed by announcements on Wednesday. This may be the time for the market to give information for the next move.”

With investor sentiment becoming more sensitive, Bitcoin price is becoming more and more volatile. Last week saw BTC lose its 200-week moving average (MA), 50-day MA and actual price at the $22,700, $22,200, and $21,850 levels. Many analysts warn that the next step could be an extended pullback below the trendline.

Meanwhile, data shows supply is shifting from large to smaller investors in recent months. In its latest study, analytics firm Arcane Research calculated the combined sales of major institutional investors to be more than 236,000 BTC since May 12, when Terra Classic (LUNC) collapsed. .

“Major investors have sold a total of 236,237 BTC amid market stress over the past two months. This number does not take into account the natural capitulation and hedging that often occurs in bear markets.”

Data from on-chain analytics platform Glassnode shows that based on the overall percentage of BTC supply, entities owning 1 BTC or less are rapidly increasing. In particular, according to data posted by Documenting Bitcoin, this trend has increased sharply in 2022.

Top 10 cryptocurrencies on July 26, 2022

The Altcoin market is also in the red as Bitcoin approaches $21,000.

In the past 24 hours, many tokens in the top 100 market capitalization have recorded losses of over 10% such as Lido DAO (LDO), Convex Finance (CVX), Curve DAO Token (CRV), Fantom (FTM), Quant (QNT). )…

Ethereum price has also evaporated more than 8% on the day. After hitting a local top at $1,664, ETH turned sharply lower, losing $1,600 and $1,500 respectively, and is currently approaching the $1,400 area.

Tokens in the top 10 by capitalization such as BNB, XRP, ADA, SOL, DOGE all share the same fate when falling 4-5% in the 24-hour frame.

FGI Index July 26, 2022

The sentiment of the whole market has also cooled down compared to yesterday, the FGI index is still at Fear 26, down 4 points compared to yesterday.

Macro factors

US stocks fluctuated slightly on Monday (July 25), as investors braced for the busiest week of the earnings season, as well as the possibility of a rate hike from the US Federal Reserve. (Fed).

Ending Monday’s session, the S&P 500 index rose slightly 0.1% to 3,966 points. The Dow Jones Industrial Average rose 0.3% to 31,990. The Nasdaq Composite Index fell 0.4 percent to 11,782 points. All three major indexes are headed for the strongest month of the year so far.

The last trading week of July 2022 is the most important moment this summer, with the Fed meeting and GDP data due to be released this week. Nearly a third of S&P 500 companies will also report earnings this week, including Apple, Alphabet and Microsoft. All of these events take place when investors are concerned about the possibility of an economic downturn.

Tech stocks fell on Monday following the warning from Snap, which posted disappointing earnings last week. Meta Platforms shares lost 1.5%, Amazon fell 1.1%. Shares of Apple, Microsoft and Alphabet also fell slightly.

Investors turned to riskier assets last week after some positive business results left Wall Street pondering whether the bear market had found a bottom.

After gaining momentum at the beginning of the session, gold prices turned down slightly on Monday (July 25), as US government bond yields rose again and investors forecast the US Federal Reserve (Fed) will raise interest rates by 75 basis points later this week. At the end of the session, the spot gold contract fell 0.5% to 1,718 USD/oz. Gold futures also lost 0.5% to $1,718 an ounce.

Contrary to gold, oil prices rose more than 1% on Monday (July 25), as concerns about a supply shortage increased and the dollar weakened. Ending the session, the Brent oil contract increased sharply by 1.9% to 105 USD/barrel. The WTI oil contract added 2.1% to $96 a barrel.

While people have accused government officials and agencies of trying to change the definition of a recession over the past few years, Joe Biden’s administration now claims that a low gross domestic product (GDP) Negative GDP for 2 consecutive quarters does not indicate that the US economy is in recession despite the fact that two consecutive quarters of negative GDP has always been considered a recession in the eyes of economists around the world for many years. past year.

On July 21, 2022, the Biden administration published a blog post called “How do economists determine if the economy is in a recession?”. The White House report said:

“While some would argue that a GDP contraction for two consecutive quarters would constitute a recession, that is neither the official definition nor how economists judge the state of the business cycle.”

US Secretary of the Treasury, Janet Yellen, later also stated that GDP shrinking for two consecutive quarters is not the correct definition.

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