The cryptocurrency market digest. Overview for 11.03.2022

The crypto market is once again experiencing a local decline and there is a fundamental reason for that. Yesterday, the US reported on the February inflation and the indicator skyrocketed to its 40-year high, 7.9% y/y. Investors were expecting the actual reading to be quite high but the reality turned out to be much more disappointing.

Rising inflation means that the US Fed is getting closer and closer to tightening its monetary policy and raising the benchmark interest rate this year. It’s no surprise but now market players know it for sure and have to respond.

Good news is that during the March meeting the American regulator might decide to raise the rate by 25 basis points and will surely be very careful in its estimations of future prospects. The Fed won’t talk about cutting its own balance – it might result in great sales in capital markets and the regulator doesn’t want any extra emotions right now. if the stock market remains stable (NASDAQ and S&P 500 in the first instance), the crypto market may reach stability. We remind you that there is a stable correlation between NASDAQ and the BTC.

The Bitcoin rate lost almost 7% yesterday and remans under bearish pressure; it is mostly trading at $39,065. It means that the BTC continues moving within a sideways channel of $34,000-45,000. The closest support is at $33,500, the next one – $27,600.

ETH: the flat continues

The ETH price also remains in the flat of $2,268-2,732. In the short term, there are no reasons why the price may break this channel but investors are obviously ready to explore any opportunity for that.

USDT: global financial systems have weaknesses

The rate of USDT, the third biggest cryptocurrency in terms of capitalisation, is also falling on Friday. The Tether head Paolo Ardoino said yesterday that activities of global central banks to create their own digital currencies are far behind the innovativeness of his own company when it formed USDT. He believes that the modern financial system is digitalised enough but still has a lot of serious weaknesses.

NFT: new cards from Warner Brothers

And here is some news from the parallel universe: Warner Bros intends to issue 6 million cards with NFTs displaying ВС superheroes. A set of cards will cost $5-120, and NFTs will be issued oт the basis of a sidechain of Ethereum Immutable X. What’s the point of such tokens? An NFT is an ownership certificate, it is not divided into parts and is usually limited in number. The fewer NFTs, the more valuable and unique they are.