Markets search for stability following Friday's liquidations

CRYPTO and equity markets faced sharp sell-offs on Friday, following disappointing US job numbers, signalling deeper concerns over US economic recovery.

Three major US stock indices - including the SP500 - logged their worst weekly performance of the year, while Bitcoin, after slipping below $53,000 from a high of $56,800, rebounded slightly to $55,100 this morning. Despite this bounce, it remains down by more than 4% across seven days.

Ethereum mirrored Bitcoin's trajectory, struggling to gain momentum. However, altcoins like Chainlink, Avalanche, and Uniswap bucked the trend, each climbing above 4% overnight. Fantom and CurveDAO led the charge with gains exceeding 7%, offering some relief to investors amid a turbulent September.

The market remains jittery ahead of the Federal Reserve’s anticipated rate cuts. Investors are increasingly betting on a 0.25% reduction, with the CME FedWatch Tool indicating a 69% probability.

How much of this expectation is already priced in is a question that will loom large as more economic data is released. 

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In the Markets

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Total crypto market cap

$1.94 trillion (+0.51%)

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What Bitcoin did yesterday

Daily high $55,337 |  Daily low $54,595

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Bitcoin market capitalisation

$1.09 trillion (56.82 of market)

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Bitcoin 24-hour trading volume

$22.2 billion (+33.6%)

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SP500

-1.73%

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Fear and Greed Index

26 (Fear) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

58

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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