Market Wrap: Bitcoin Trades Flat Ahead of Inflation Report

Price Action

Bitcoin and ether started the work week slightly lower as markets await U.S. inflation data due Thursday.

Impactful economic data announcements will be light until that point, although investors will be scrutinizing September’s Federal Open Market Committee minutes, which the U.S. central bank will release Wednesday. The minutes will shape expectations for FOMC’s aggressiveness at its next meeting. FOMC is widely expected to raise the interest rate a hefty 75 basis points for a fourth consecutive time.

Bitcoin (BTC) recently declined 1.07% on below-average volume, falling 0.55% at the onset of U.S. trading hours. BTC’s daily volume has been below average in nine of the last 10 trading days, when compared to its 20-day moving average. The lack of volume suggests a lack of conviction, either bullish or bearish.

Ether (ETH) followed a similar path, declining 1.12%, also on below-average volume. ETH’s trading volume has fallen below its 20-day moving average for 12 consecutive days. The second-largest cryptocurrency by market capitalization now sits just above $1,300 and is down 65% year to date.

The CoinDesk Market Index (CMI), a broad-based market index that measures the performance of a basket of cryptocurrencies, is relatively flat, down 0.90%. The top mover on Monday was quantstamp (QSP), up 32.18% to $0.019, while the day’s laggard was injective protocol (INJ), down 7.18% to $1.81.

Macro View

Traditional financial markets were lower across the board, with the Dow Jones Industrial Average (DJIA), tech-heavy Nasdaq Composite and S&P 500 down 0.32%, 1.04% and 0.75%, respectively.

The Dollar index (DXY), which has held a largely inverse pricing relationship to BTC since August, is up 0.34%. BTC investors will be watching the index for signs of growing dollar strength, particularly in light of FOMC’s focus in reducing inflation.

In commodities, energy markets were lower, with WTI and European Brent crude down 2% and 2.1%, respectively. In metals, traditional safe-haven asset gold declined 2%, while copper futures rose 1.6%.

Latest Prices

● Bitcoin (BTC): $19,238 −1.2%

● Ether (ETH): $1,308 −1.0%

● CoinDesk Market Index (CMI): 952.64 −1.1%

● S&P 500 daily close: 3,612.39 −0.7%

● Gold: $1,675 per troy ounce −1.5%

● Ten-year Treasury yield daily close: 3.89% +0.005

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Technical Take

Bitcoin Continues Quiet Run Between $19,000 and $20,000

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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The CoinDesk Market Index (CMI) is a broad-based index designed to measure the market capitalization weighted performance of the digital asset market subject to minimum trading and exchange eligibility requirements.

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