Cryptos
Terra 2.0 is simply another disaster as cryptocurrency is going through a roller coaster after the failure of Terra 1.0. As we mentioned before, a collapse of a cryptocurrency like Terra 1.0 is extremely bad for crypto sentiment.
In addition to this, Solana, an ETH killer, saw another outage this month, yesterday, and that sent its price plunging. The fact is that you cannot be an ETH killer if you are having so many rapidly occurring network outages.
Now, crypto investors are able to view Solana from a different lens, and it is highly possible that its price will continue to grind lower.
As for the crypto king, Bitcoin, bulls have refused to support the price once again, and the recent jump has turned out to be nothing more than a dead cat bounce.
Traders are now focusing on the next important price level of 25K, and it is extremely important for us to see sizable bids at that price level; otherwise, we are likely to see another bloodbath.
Gold
Gold prices are trading flat today after scoring decent gains yesterday. When it comes to the shiny metal, it is mainly about the dollar index.
Today is an important day as we are going to get the ADP economic number which is highly likely to cause wild swings in the yellow metal. Remember, the Fed’s monetary policy is very much dependent on two things: inflation and economic activity.
If the economic data shows weakness, i.e., the US ADP number fails to impress Wall Street, we are likely to see gold prices moving higher as traders will think that the Fed cannot maintain its hawkish stance.
In addition to this, something else that gold traders are also paying attention to is the fear of stagflation. A warning from JP Morgan’s CEO is a real deal for gold traders as he has a lot of visibility in terms of consumer activity.
Yesterday, Jamie Dimon, issued a warning by saying a hurricane is heading for the US in terms of economic activity. Remember, gold acts as a safe haven, and speculators are likely to jump on gold the moment they smell any threat of economic weakness.