By Samuel Indyk
Investing.com – Major cryptocurrencies rose Thursday morning, trading above $ 50,000 and new cryptocurrency number three,, traded above $ 3.00 for the first time.
Weak ADP (NASDAQ 🙂 raises prices?
Wednesday was worse than expected, ADP reported that only 374,000 new jobs were created in August, up from expectations of 613,000. The disappointing number sets the tone for Friday’s official report.
The Fed has said time and time again that “significant further progress” is not yet to be made towards its labor market target, even though it is getting closer. A weak report on Friday could cause the Fed to pull back on its schedule to start reducing bond purchases later in the year. On the flip side, a strong report and the September Fed meeting could see the announcement the financial world has been waiting for.
If there is any indication of a delay in the Fed’s schedule after poor employment tomorrow, it could be seen as positive for Bitcoin and other major cryptocurrencies, given the prospect of longer monetary easing.
DeFi coins continue to outperform
Although Bitcoin has had a strong 24 hours behind it, profits in cryptocurrencies related to decentralized financial applications (DeFi) and non-fungible tokens (NFTs) continue to outperform.
is up over 6% in the past 24 hours and continues its recent rally as it looks to be regaining $ 4,000. Year on year, Ethereum has grown over 400% compared to Bitcoin’s 73% gain.
The increasing demand for NFTs has helped propel Ethereum higher. Companies from Visa (NYSE 🙂 to Anheuser Busch Inbev (BR 🙂 have announced forays into the NFT market in recent weeks and the euphoria over the emerging sector shows no signs of slowing.
And it’s not just Ethereum that benefits from the NFT craze. Two ‘Ethereum killers’ to come, and neither show any signs of the rally slowing down.
Both cryptocurrency projects have a similar goal and use case to Ethereum, such as DeFi apps and NFTs.
SEC comments
Yesterday, the Financial Times published comments from the chief of the US Securities and Exchange Commission, Gary Gensler, on regulation.
“At a global value of about $ 2 trillion [the cryptocurrency market] is at the level and nature that if it matters in five and ten years, it will be within a public policy framework, ”Gensler said in an interview. “History just tells you that it doesn’t take long outside. Finances are ultimately about trust. “
There is no doubt that the US cryptocurrency industry is regulated, but many have viewed these recent comments from Gensler as positive for the industry.
Regulation could help legitimize the asset class and would provide additional security and reassurance to investors currently cautious about investing in cryptocurrencies.
Where to go next for bitcoin
After trading above $ 50,000, the next resistance area is at $ 51,000, which marks the 61.8% Fibonacci line from the April high to the July low.
Jeffrey Haley, Senior Markets Analyst at OANDA, identifies the 200-day moving average (DMA) as an important level of support.
“What’s noteworthy is that Bitcoin’s dips for the past fortnight have all stopped just short of the 200-day moving average at $ 46,000,” Halley said.
“I remain optimistic about Bitcoin as long as the 200-DMA lasts on a daily closing basis.
“The technical picture suggests that an increase of up to $ 50,500 will create additional profits with a target of $ 58,000.”
