Bone ShibaSwap, also known as BONE, is one of the few meme coins that had a positive run on Monday. The meme coin is best known for being a token of the Shiba Inu ecosystem but is slowly emerging into an entity of its own, provided it can attract enough users to fuel its long overdue recovery.
Trading at $0.82 at the time of writing, the meme coin was up by a little under 6% over the past 24 hours. Bone ShibaSwap rising by 6% is not a big deal, but considering the past couple of days, it makes all the difference.
Since the beginning of August, the altcoin has seen a 55% decline in value from $1.73 to $0.81. In this duration, the meme coin also witnessed a death cross, marked by the crossing of the 200-day Exponential Moving Average (EMA) and the 50-day EMA, which is considered to be a bearish indicator.
Combining this with the Relative Strength Index (RSI) shows that a clearly bearish outcome is likely as the indicator is deep in the bearish zone as of now.
A further decline would send the meme coin back to $0.68, which marks the year-to-date low Bone ShibaSwap price has hit. However, in the long run, if the altcoin manages to defy all odds and rise by 20% to make it to the barrier at $1.01 and breach it, BONE would invalidate the bearish thesis.
BONE/USD 1-day chart
Flipping this level into support would also enable the altcoin to turn the 50-day EMA into an ally, further substantiating a rally.
The potential for an uptick following this rally is not too high. The reason behind this is the pessimism of the investors. The daily transactions conducted on-chain show that 20.58 million BONE worth around $16.82 million was moved at a price lower than the price it was purchased at.
This boosted the transactions at a loss, while transactions in profit only noted less than 500,000 BONE tokens bring moved around at a price higher than the purchase price. Generally, a rise in loss-bearing transactions is a suggestion that investors are losing their patience and could be prepared to offload their holdings. This increased selling pressure adds to the bearishness faced by the meme coin.
BONE transactions at a loss
Any selling would not only spook the investors holding BONE at the moment but also those willing to invest. New addresses formed on the network could see a further decline, which in turn would impact the network growth, which is at a two-month low.
The indicator is used to measure the traction of a project in the market, and in the case of Bone ShibaSwap, the interest of new investors is relatively low.
BONE network growth
Thus, the rise in BONE price may not bear any fruits as per the market’s expectations.
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Binance, the largest exchange by trading volume, has resumed operations in Belgium, around three months after suspension. An earlier report indicated that the Belgian regulatory body, Financial Services and Markets Authority (FSMA), instructed Binance to halt operations in the country beginning June 23 for violating laws.
Binance was accused of breaking regulations imposed by the FSMA in Belgium, with the regulatory body calling out the platform for “serving customers in the country from areas listed outside the European Economic Area (EEA).”
The services cited comprised virtual and legal currencies and custody wallet services, with the FSMA reiterating that the Belgian laws stipulated that “no country outside the EEA was allowed to engage in offering the aforementioned services.” Breaking either of these laws would warrant criminal sanctions as the country and its regulatory bodies strived to prevent financial crime, including laundering money or funding terrorists.
Beyond the cease and desist order from the FSMA to Binance, the Belgian regulator instructed that Binance returns to the Belgian clients in question all cryptographic keys and/or all virtual currencies that Binance holds for their account with immediate effect. The alternative was to transfer the assets to organizations under the EEA umbrella, possibly a member state and duly authorized by their domestic law to carry out such activities, including within Belgium.
The incident saw the platform push its users to the exchange’s outlet in Poland as it maneuvered the regulatory bind. Binance’s Polish arm took charge as the main service provider owing to the fact that the exchange had secured operating licenses and therefore recognized as a registered entity in Poland.
Nevertheless, in a recent development, the platform has announced that operations have resumed, with customers getting the green light to actively deposit and withdraw.
We have been overwhelmed by your show of support these past few months, by continuously standing by us.
Your patience during these recent changes has been truly appreciated. Thank you for standing by us and being a valued member of our community.
Your Binance Team
— Binance België (@binanceflemish) September 25, 2023
Meanwhile, despite positive developments in Belgium, Binance exchange continues to remain within the tight web of the United States Securities and Exchange Commission (SEC), among other regulatory bodies like the Commodities Futures Trading Commission (CFTC) and the US Department of Justice (DOJ). Both the platform and its CEO Changpeng Zhao (CZ) are the subjects of an ongoing investigation, with demonstrated intentions to protect users from a possible fallout.
CZ has maintained his stance amid all the chaos, pleading not guilty and urging users to avoid succumbing to the whim of fear, uncertainty, and doubt.
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
The GBP/JPY spread the middle for Monday, with neither the Pound Sterling (GBP) nor the Yen (JPY) finding momentum to get the chart kickstarted for the new trading week.
The GBP has struggled to find support on the charts after the Bank of England (BoE) held rates steady last week in a split vote, and it appears the end of the rate hike cycle for the UK has landed much sooner than many analysts expected. With the UK’s domestic economy teetering in the fundamental data, the BoE is hoping interest rates are high enough to keep inflation capped moving forward.
On the JPY side, the Bank of Japan (BoJ) Governor Kazuo Ueda and Deputy Governor Shinichi Uchida hit news wires on Monday. The BoJ officials talked down any hawkish expectations, reiterating the BoJ policy stance that inflation is at risk of dipping below 2%, the Japanese central bank’s minimum target before a reversal of the BoJ’s negative rate regime can be considered.
The early week sees little of note for the GBP/JPY on the economic calendar, and traders will be looking towards Thursday’s Tokyo inflation reading and Friday’s Gross Domestic Product (GDP) figures for the UK.
Japan’s Tokyo Consumer Price Index (CPI) reading is slated for 23:30 GMT late Thursday, and the core annualized figure is forecast to tick lower from 2.8% to 2.6%.
On the UK side, GDP numbers are forecast to hold steady, with the annualized GDP growth rate for the second quarter expected to print at 0.4%, in-line with the previous reading.
Intraday action has the GBP/JPY hamstrung just below the 182.00 major handle, and the pair is set to build in a floor from 181.00 as bidders look for a re-challenge of the 200-hour Simple Moving Average (SMA) settling into 182.70.
Daily candlesticks see the Guppy settling back into the 100-day SMA, with the long-term bull trend leaving the GBP/JPY well above the 200-day SMA near 172.00. The pair has slipped below the 34-day Exponential Moving Average (EMA) in the near-term, and buyers will need to remount the 186.00 handle from August’s last swing high before establishing a continuation of the bull trend.
“Japan at a critical stage whether to spur consumption or wage growth,” Japanese Finance Minister Shunichi Suzuki said on Tuesday.
Suzuki added that it is “hard to say fiscal spending may push up prices.”
Currency rates should be set by the market.
Rapid fx moves undesirable.
Share view with international authorities that excessive FX volatility is undesirable.
Closely watching FX moves with a great sense of urgency.
Won’t rule out any steps to respond to disorderly FX moves.
At the time of writing, USD/JPY is trading better bid just shy of the 11-month high of 148.99.Full Article
EUR/GBP extends its losses on the second successive day, trading lower around 0.8670 during the Asian session on Tuesday. The pair is facing downward pressure following the European Central Bank’s (ECB) President Christine Lagarde’s remarks at the European Parliament.
Lagarde observed a general deceleration in economic momentum across the European Union (EU), accompanied by a gradual moderation in job creation. However, the policymaker also highlighted that inflation is expected to remain “too high for too long” and emphasized that rates will remain restrictive for as long as necessary.
ECB confronts a complex predicament, as it must delicately manage the fine line between addressing inflationary forces and avoiding detrimental effects on the disparate domestic economies within the Eurozone.
Investors await the data release of the Eurozone’s Harmonized Index of Consumer Prices (HICP), which is scheduled for Friday.
These datasets may provide crucial insights into the inflationary pressures in the bloc and could impact trading decisions involving the Euro.
In the United Kingdom (UK), the Bank of England (BoE) opted not to move forward with a widely expected interest rate increase on Thursday. This decision was based on inflation figures for the UK economy that fell generally below expectations.
The surprising pause in the BoE’s rate hike cycle has added to the British Pound’s (GBP) relative underperformance. It is also seen as a factor exerting downward pressure on the EUR/GBP pair. Notably, the UK central bank had previously implemented 14 consecutive interest rate hikes.Full Article
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $89.25 mark so far on Tuesday. WTI prices snap their three-week winning streak as investors concerned about higher interest rates and oil demand outlook,
The higher-for-longer rate narrative in the US caps the upside for WTI prices after the Federal Reserve (Fed) held the interest rate unchanged and delivered hawkish comments last week. It’s worth noting that higher interest rates raise borrowing costs, which can slow the economy and diminish oil demand. Additionally, the stronger US Dollar (USD) is another factor contributing to the decline in oil prices, as a stronger greenback makes oil more expensive for holders of other currencies, thereby reducing demand.
On the other hand, Saudi Arabia and Russia, the world’s two largest oil exporters boosted WTI prices as two nations announced prolonged oil output curbs until the end of 2023. Saudi oil output will be closer to 1.3 million barrels per day through the end of 2023. Furthermore, Russia’s temporary ban on gasoline and diesel exports to the majority of nations, announced last week, was anticipated to significantly tighten supply.
Looking ahead, oil traders will take cues from the API and EIA weekly Crude Oil Stock for the week ending September 22. The US Consumer Confidence for September and housing data will be due later on Tuesday. Later this week, the US Gross Domestic Product (GDP) Annualized for the second quarter will be due on Thursday and the Core Personal Consumption Expenditure (PCE) Price Index will be released on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI prices.Full Article
Minneapolis Federal Reserve Bank President, Neel Kashkari, said early Tuesday, “I am one of the fed policymakers who sees one more rate hike this year.“
Still more work to do on services inflation.
Fed can definitely get back to 2% inflation.
May need to cut rates if real rates are tightening.
US rates probably have to go a little bit higher, be held there for longer, to cool things off — remarks made earlier on Monday and now posted on the Minneapolis Fed website.
Falling inflation next year might justify backing off Federal funds rate to stop if from getting tighter.
Balance sheet runoff will continue for the foreseeable future.
Effects of balance sheet runoff may not be fully felt yet.
The USD/CHF pair consolidates its recent strong gains to the highest level since late May touched the previous day and oscillates in a narrow band during the Asian session on Tuesday. Spot prices currently trade around the 0.9125 region and seem poised to prolong a two-month-old upward trajectory.
The Swiss National Bank (SNB) surprised markets last Thursday and decided to pause its rate-hiking cycle for the first time since March 2022, noting that inflation has subsided. This, in turn, continues to undermine the Swiss Franc (CHF), which, along with the underlying bullish sentiment surrounding the US Dollar (USD), is seen acting as a tailwind for the USD/CHF pair. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, stood by the 10-month peak touched on Monday and remains well supported by the Federal Reserve’s (Fed) hawkish outlook.
The US central bank reiterated its higher-for-longer interest rates narrative and warned that still-sticky inflation was likely to attract at least one more hike by the end of this year. Furthermore, investors are now getting increasingly wary about the potential inflationary impact of rising Oil prices. This, along with the incoming resilient US macro data, should allow the Fed to stick to its hawkish stance. The outlook, meanwhile, leads to an extended selloff in the US fixed incoming market, pushing the yield on the rate-sensitive two-year government bond to its highest level since 2006.
The benchmark 10-year US Treasury yield also climbs to a 16-year peak, further beyond the 4.50% threshold, and continues to underpin the Greenback. That said, the extremely overbought Relative Strength Index (RSI) on the daily chart is holding back traders from placing fresh bullish bets around the USD/CHF pair. The recent breakout through a technically significant 200-day Simple Moving Average (SMA), meanwhile, suggests that the path of least resistance for spot prices is to the upside and any meaningful corrective pullback is more likely to get bought into.
Market participants now look to the US economic docket – featuring the release of the Conference Board’s Consumer Confidence Index, New Home Sales and the Richmond Manufacturing Index. This, along with the US bond yields, will influence the USD price dynamics and produce short-trading opportunities around the USD/CHF pair. Bulls, however, might wait for some near-term consolidation before positioning for any further appreciating move.
On Tuesday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1727, compared with the previous day’s fix of 7.1727 and 7.3174 estimated.Full Article
Dollar Drives to Yearly High
The US dollar has driven to a yearly high after notching up its fourth straight positive trading day after last week’s hawkish Fed update. Concern in the market that higher Oil prices will push inflation higher and further away from the Fed’s target 2% has led to a charge higher in the greenback. Fixed income markets have also continued to push treasury yields north with the benchmark 10-year now trading up at 4.53% and stock markets remain choppy and vulnerable as the market continues to digest the potential for rates remaining higher for longer. Investors are now preparing for more of the same as the trading week progress with any rallies in risk likely to be hit hard.
JPY Hits 10 Month Low
The Japanese Yen has hit a 10-month low in trading today after the Bank of Japan advised markets that it will continue with its ultra-easy rate policy. Both the Governor and his deputy spoke on separate occasions and the message was the same – rates will remain accommodative for the foreseeable future. Traders had been looking for a change of policy after the bank had hinted that it was imminent just a few months ago but now BOJ policy could be at odds with the government which does not want to see excessive moves in the currency market – in reality, further Yen weakness. Be prepared to hear more about potential intervention again and for action to occur as one policy does not necessarily support the other. It could be a bumpy ride ahead for Yen traders in the next few weeks.
Momentum to Continue to Dictate Markets
There is little on the event calendar in the first two sessions of Tuesday’s trading day to excite investors and therefore the downwards momentum that markets have experienced over the last few days is likely to continue. There are some tier 1 releases due out in the New York session and this could see some further volatility. US Consumer Confidence, New Home Sales and Richmond Manufacturing Index numbers are all out at the same time and lower prints could ironically help the risk sentiment, however many feel that with the current conditions they could just be providing better levels to sell.
EUR/USD continues to move on the downward path, trading lower around 1.0580 during the early trading hours of the Asian session on Tuesday.
The pair has posted the lowest close on Monday since March despite the European Central Bank (ECB) President Christine Lagarde’s statement at the European Parliament that rates will remain restrictive for as long as necessary.
However, Lagarde has also highlighted that inflation is expected to remain “too high for too long.” However, the ECB faces a challenging situation, as it must carefully navigate the delicate balance between addressing inflationary pressures and not harming an uneven domestic economy in the Eurozone.
The US Dollar Index (DXY) hovers near 106.00 at the time of writing, although it’s below its highest level since November. The US Dollar (USD) is maintaining its strength, partly due to cautious market sentiment and higher US Treasury yields.
The yield on the 10-year US Treasury note improved to 4.55%, a level that hasn’t been observed since October 2007. The expectation of high-interest rates persisting for an extended period is rooted in the resilience of the US economy.
Investors await the release of the US Federal Reserve’s (Fed) preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, and the Eurozone’s Core Harmonized Index of Consumer Prices (HICP), which are scheduled for Friday.
These datasets may provide crucial insights into the inflationary pressures in both economies and could impact trading decisions on the EUR/USD pair.Full Article
The USD/CAD pair oscillates in a narrow range during the early Asian session on Tuesday. The weakening of the Loonie is weighed by the downtick in oil prices while the higher for longer narrative in the US lifts the US Dollar (USD) across the board. As of writing, USD/CAD is trading around 1.3457, gaining 0.02% on the day.
The US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, hovers around 105.95 after retreating from the highest level since November of 106.09 amid the USD demand and a rising of the US 10-year yield to the highest level since October 2007.
That said, the oil price edges lower for two straight days on Tuesday, which undermines the commodity-linked Loonie and might cap the upside for the USD/CAD pair as the country is the leading oil exporter to the US.
Most Fed officials still anticipate further rate hikes later this year. Susan Collins and Mary Daly, Presidents of the Federal Reserve Banks of Boston and San Francisco, stressed that, although inflation is slowing, future rate rises are likely. While Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain elevated, and the Fed should be fully committed to bringing inflation to 2%. These hawkish comments from Fed officials boost the USD and act as a tailwind for the USD/CAD pair.
Moving on, the US Consumer Confidence for September and housing data will be due later on Tuesday. On Thursday, the US Gross Domestic Product (GDP) Annualized for the second quarter will be released. The closely watched event will be the Core Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of consumer inflation, due on Friday. The annual figure is expected to drop from 4.2% to 3.9%. Also, Canadian GDP numbers will be due on Friday. Market players will take cues from these figures and find a clear direction in the USD/CAD pair.Full Article