Who grew the most?
Leader of the day - ZEC. The coin added 8%, to ~$1,320, and returned above $1,300 after Monday's sell-off.
- HYPE - almost 5%, to ~$81
- XRP and DOGE - about 3% each
- ETH - 2%, slightly above $2,350
- SOL - 2%, to $102
- BNB - 1%, TRX - less than a percent
Why did the market go up?
The reason is external. Tech stocks in the US continued to rise, and crypto followed.
- Appetite for risk. Risky assets usually move in the same direction.
- The role of crypto. Here the crypto market is the follower, not the leader.
What does the technical picture say?
BTC is again above the 50-week moving average. This is the average closing price over a year, used to assess the long-term trend. The next reference point being discussed in the market is a daily close above $82,500.
Alex Thorn, head of research at Galaxy, in his note called the June drop below $58,000 the bottom of the bear market. In his view, a accumulation phase is now underway.
- First argument. Selling pressure has weakened.
- Second argument. US government debt is growing.
- Caveat. This is an analyst's opinion, not a market fact.
What happens next?
The Fed's rate decision comes out during the day on October 28. The date is in the economic calendar.
Traders will be listening to the press conference of Fed Chair Kevin Warsh. The main question is hints of a rate hike in December.
Key point: expensive money usually pulls capital out of risky assets, including crypto.
Saw this bounce, but on your own deposit?
Eight percent in a day on one coin and two on BTC is a move everyone noticed. The question is how much of it is left in the account. On a deposit of a couple thousand dollars, such a day closes out with a dinner's worth. Prop trading removes exactly the notional limit: the company issues a trading account, you work under its rules and receive a share of the profit. The Fed decision comes out today during the day, and it makes more sense to understand the mechanics before then.