January 27, 2022

​​$BTC 24 Hour High $38,924 / Low $36,270    |   $BTC +0.1% Past 24 hours; -11.50% Past 7 days

Markets stabilized as FOMC in line with expectations

Good morning. The equity futures and digital asset prices finally stabilized after the highly-anticipated  Federal Open Market Committee (FOMC) meeting yesterday. Most investors were relieved as Chairman Jerome Powell announced to hold interest rates at near zero but reiterated plans to hike rates, which can happen as early as March. That said, the Crypto Greed & Fear Index has remained firmly in the ‘extreme fear’ zone since the end of November 2021.

$BTC pushed higher towards $40K but is now holding at $36.5K after finding resistance at $39K. 

The current level of funding rates implies that leverage is used more on the short side of the market. If price breaks down, we see a confluence of technical indicators also suggest key support at $27K. Keep an eye on this for the next few weeks as the key resistance level to break remains $40K. 

$ETH spiked to test the lows from the end of September over the last 24 hours before moving lower to trade at the same levels we were at 24 hours ago. Expect a long way for a price recovery since the current prices are still hovering around the 0.5 Fibonacci retracement level of the entire bull run since March 2020. Based on these Fibonacci retracement levels, it becomes more evident that another leg down could take $ETH below $2,000. It’s also worth noting that the pullback to equity markets is close to 1 at this moment, while the pullback to the dollar is close to 0.

After stepping up efforts to crack down on digital assets, China has recently announced plans to build and regulate a metaverse with its homegrown tech giant Alibaba, Tencent and 1000 other companies applying for close to 10,000 metaverse-related trademarks in recent months. Experts weighed in, saying it could have the following 3 “C”s in terms of its characteristics: “Clean”, “Censored” and “Compliant”.However, it will be challenging for mass adoption to anytime soon as China is playing catch up in this space while Oculus VR headsets are banned from sale, and development attempts of domestically-produced VR headsets are feeble. 

Learn more from today’s Trader View video

Digital assets market:

  • Total crypto market capitalization stands at $1.77T, +0.2% from yesterday
  • $BTC is +0.37% at time of writing; 24H liquidations and funding rates: $95.13M, -0.02024% average
  • $ETH is +0.55% at time of writing; 24H liquidations and funding rates: $92.46M, -0.02245% average
  • Stablecoins market dominance: USDT 47%; USDC 29%; BUSD 9%; TerraUSD 9%; DAI 7%

Alts and DeFi watch:

  • DeFi TVL: $199.74B (+0.49% over last 24h)
  • $SOL -1.3% in the last 24 hours, -32.3% in the past week 
  • $SHIB +0.9% in the last 24 hours, -22.6% in the past week
  • $SAND -2.0% in the last 24 hours, -25.7% in the past week
  • $ENJ +0.1% in the last 24 hours, -29.6% in the past week

More news that caught our eye:

OSL Trader View is contributed by Stefan von Haenisch & Ethan Fu.

OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.

Home to one of the world’s largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.

Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.

And be sure not to miss future OSL news and insights by following us on Twitter, Linkedin, Facebook, and Telegram.

Please refer to OSL’s relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.