$BTC reclaims $40K threshold as Fed hikes interest rates

​​$BTC 24 Hour High $41,498 / Low $38,850   |   $BTC +4.6% Past 24 hours; -2.2% Past 7 days

Good morning. There was a roller coaster ride over the last 24 hours as the Fed confirmed the long-awaited 25 bps rate hike and shrunk its balance sheets. Major indices turned green (NASDAQ and S&P 500) after the news, along with the digital assets markets. Though tightening monetary policies usually means riskier assets tend to be shunned, this rally could be attributed to investors shedding fears that more hawkish policies could have been declared instead.

$BTC finally reclaimed the $40,000 handle but it seems that the news itself has pretty much priced in already. $BTC has consolidated below the important $40,000 psychological level for nearly a month already, with the $37,000-$40,000 support zone remaining intact. In the past 24 hours, nearly 71% were BTC shorts being liquidated, and we also noted a pop in the 1-week implied volatility – some short-covering could be fulled by current price action. Despite $BTC climbed by 2%, it was outshined by other altcoins such as $SAND and $LINK, which saw a 10% and 5% increase respectively in the same timeframe, suggesting a growing appetite for risks among the investors. We need to breach the next major resistance at $42,500 which we visited last week. To confirm further upside momentum, a breakthrough of the upside hurdle of $44,400 is much needed.

Compared to other altcoins, $ETH saw insignificant price action over the past 24 hours, and it’s hovering at $2,762, the 0.618 Fibonacci retracement level. With prices being compressed, market participants seem to have shifted their attention to other altcoins instead. We are keen to see $ETH hold above the support levels at $2,400 and $2,290 and gather its bullish momentum. Funding rates are relatively flat, with volatility and trading volumes still on the downtrend. There was not much of a change in ETH’s derivatives metrics either. 

Learn more from today’s Trader View video

Digital Assets Market

  • Total crypto market capitalization stands at $1.9T, +3.7% from yesterday
  • $BTC is -0.3% at time of writing; 24H liquidations and funding rates: 135.08M, +0.00574% average
  • $ETH is -0.1% at time of writing; 24H liquidations and funding rates: 58.71M, +0.00725% average
  • Stablecoins market dominance: USDT 43.26%; USDC 28.26%; BUSD 9.62%; UST 8.12%; DAI 5.07%

Alts and DeFi watch:

  • DeFi TVL: $203.64B (+2.52% over last 24h)
  • $SOL +5.6% in the last 24 hours, -0.5% in the past week
  • $SHIB +5.1% in the last 24 hours, -5.0% in the past week
  • $SAND +22.1% in the last 24 hours, +12.4% in the past week
  • $ENJ +8.0% in the last 24 hours, +2.8% in the past week

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OSL Trader View is contributed by Terrance Leung, Andrea Au & Ethan Fu.

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