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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Crypto Market Holds The Line On “Dull” Earnings Week Start

Reynaldo Marquez
Reynaldo Marquez
Last Updated: July 25, 2022 10:13 pm
2 mins read
altcoin Cumberland Crypto Firm Predicts More Liquidation Before Following An Uptrend

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The general sentiment in the crypto market seems to be turning bearish as Bitcoin and Ethereum record losses over today’s trading session. The two larger cryptocurrencies by market cap still record some gains over higher timeframes but seem poised for a dicey week.

Related Reading | Bitcoin Puell Multiple Lifts Off From Buy Zone, Bull Momentum To Follow?

At the time of writing, Bitcoin (BTC) trades at $22,100 with a 3% loss in the last 24 hours. In the meantime, Ethereum (ETH) trades at $1,520 with a 6% loss over the same period.

Ethereum Crypto ETHUSDT
ETH’s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview

The crypto market faces some hurdles with this week’s public companies’ earnings reports. If public companies failed to meet market expectations, risk-on assets could resume their bearish trend.

Jurrien Timmer, Director of Macro for investment firm Fidelity, believes this earnings season has been “boring”. So far, only 104 companies in the U.S. public market have released their reports with Meta, Apple, and other major entities still to go.

In addition to that, the U.S. Federal Reserve (Fed) could announce a decision on interest rates hike. Most market participants expect a 50 basis point to 75 basis points increase, anything higher in combination with a poor earnings season could trigger downside volatility for crypto assets.

On the second week of this earnings season, Timmer said the following sharing the chart below:

After all the handwringing about “the next shoe to drop,” a boring earnings season would be a relief. Q2 so far appears to be just that, with 72% of companies beating (lowered) estimates by an average of 4.3%. Only 104 companies reported so far, but it’s good start.

Fidelity Crypto Bitcoin
Source: Jurrien Timmer via Twitter

Should Crypto Investors Prepare For The Worst?

Further data provided by Timmer hints at an extension of July’s bullish price action for the S&P 500. This major index records a 16% drop since January 2022 and could trend higher forming a “risk rally” if “earnings growth” continues to hold.

In the past months, Bitcoin, Ethereum, and the crypto market have seen positive appreciation after a major Fed event. This Wednesday, the financial institution will hold its Federal Open Market Committee (FOMC) meeting.

According to Timmer’s conclusions, if earnings remain “boring” the crypto market seems likely to push further upwards. However, the Fed might push down risk-on assets with a 100-bps hike.

Related Reading | Is Ethereum Stronger Than Bearish Macro Factors? Why ETH Will Be Tested This Week

Via Twitter, a pseudonym analyst makes the case for a hawkish Fed on the back of “solid” data recorded by the U.S. jobs markets. This data might hint to the financial institutions that they can “keep pushing until something breaks”. The analyst said:

So long as the market sees US employment holding up, it will be on edge for tighter monetary policy shifts (sell the rally). The Fed know that breaking the employment market will help calm inflation. If people are losing their jobs and have no dollars to spend, demand-side pressures wane and the supply-side can normalize.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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