Crypto Market Review, September 9

The cryptocurrency market ended the week on a positive note as the total market capitalization of the industry once again exceeded $1 trillion, despite dipping below the psychological threshold earlier.

The main reason behind recovery

In recent weeks, we saw how problematic the entire situation in the cryptocurrency market was due to a lack of inflow. The bearish background of the market, the lack of positive events in the space and the only growth factor in the market reflected in the Ethereum Merge update are not enough to push the prices of digital assets not related to Ether up.

But despite all the negativity, the market felt some relief after the Fed’s Powell speech which reassured most market participants about the path taken by regulators to control high inflation and problems in the US economy.

The predictability of a monetary policy can sometimes be more important to the market than the macro environment it exists in. The ECB rate hike of 75 bps was also expected, making the event less stressful for the market as it has been priced in earlier.

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Earlier, the cryptocurrency market saw one of the biggest spikes in open interest in trading history, suggesting that speculators are returning to the market expecting a spike in volatility in the coming days or weeks. This is not a surprise considering the series of important market-related events that will take place over the next week.

CPI inflation data will be released on September 13, potentially changing the strategy of US financial regulators towards easing or tightening if necessary. The FOMC meeting is expected on 20 September, where the Fed will increase the key interest rate. Fortunately, the market has already priced in interest rate increases until the end of the year, so the spike in volatility should not be too extreme if all goes as planned by the market.

The Ethereum merger will also happen around September 13th or 14th and should not shake the market in any way if there are no technical issues during the transition.

Raven and XRP are running after it

With the recovery of the cryptocurrency market, alternative cryptocurrencies are also showing a lot of strength by gaining up to 20% to their values ​​in the last 24 hours. The biggest gainer in the market today was Ravencoin, which was considered one of the main candidates for the hashrate transition from Ethereum once PoW is turned off.

XRP has also proven to be a good candidate for a reversal as the coin rallied more than 10% to its value over the past three days, making a big return in the bullish price range from which it will be able to bounce back, and now the next resistance level reflected in the 200-day moving average.

For now, the cryptocurrency will need to gain a foothold above the 50-day moving average and consolidate until the market faces a new wave of inflows, which will be driven by either a successful Ethereum merger or unexpectedly low inflation numbers.