Currencies: a calm that contrasts with the fall of crypto-assets – 05/09/2022 at 19:30

(CercleFinance.com) – It was a relatively calm session in Forex, with limited spreads and no significant technical threshold crossings.

The Euro climbed +0.1% to 1.0560, the Yen +0.2%… and the weakest currency was the Swiss Franc with -0.5% against the $ and -0.6% against to the euro.

The contrast in terms of volatility is striking with crypto-currencies with falls 3 times greater than the US and European stock market indices: -8.5% on bitcoin ($31.00, -9% on Ethereum (under $2,300) , -13% on BNB and DogeCoin, -14% on Solana, -15% on Cardano, -16.5% on Polkadot, -18% on Shiba Inu and Luna.

It is a day that is very expensive for crypto holders because beyond the gaps, it is the breakout of major supports that is in question: this session marks a new stage in the bursting of the bubble with gaps mainly above -50% on tops and -75 (Ripple, Solana) and -80% and above are not uncommon on ex-stars such as Litecoin, Cardano, Polkadot Shiba Inu (all are -80%) , the Doge Coin (Elon Musk’s favorite at -86%).

The Dollar should continue to be supported by the words of Neel Kashkari, the chairman of the Federal Reserve of Minneapolis expects a series of movements of +50Pts in the coming months.

And he clarifies that ‘letting inflation stay at these very high levels is not good for anyone and it is not good for the long-term potential of the economy’.

He concludes by ‘the priority is to bring inflation back to 2%, not to maintain the markets at overvalued levels’.

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