Chainlink Sinks, Sushiswap Flops, Uniswap Pops

Last week equity markets failed again to excite as investors recovered from the tech sell-off the week before that hindered the Nasdaq. Wednesday saw a dip in the S&P 500, with the top US index currently sitting at 3,319. Here in Europe, the STOXX Europe 600 also saw a dip on Wednesday. It dipped further and opened today at 360. 

In crypto, bitcoin touched $11,000 various times, whilst other altcoins had varying weeks. Chainlink dipped again, whilst excitement around Uniswap tokens continued to drive interest in DeFi.

Bitcoin teases around $11,000

Relative to some of the stagnation we have seen in recent weeks, with the price often hanging around the $10,300 level, last week Bitcoin performed well. It surpassed $11,000 on Wednesday, jumping above and then below that mark before a slight retracement in the early hours of Thursday. Bitcoin is in a healthy position. Although it hasn’t hit $13,000 since June 2019, from a technical perspective it is feasible to expect its next target to be $12,500.

On Wednesday the Federal Reserve indicated that a cut to interest rates was not on the cards, especially given last month’s policy announcement, where Powell said that the Fed is now only targeting an average inflation of 2%, made at Jackson Hole. Portfolio managers were understandably disappointed with the Fed’s decision. However, the Fed’s dovishness is positive news for Bitcoin and shows how many other central bankers are thinking. This environment of dovish central banker policy, combined with the extensive fiscal stimulus we have continued to see is clearly a positive backdrop for bitcoin.

Chainlink sinks, Sushiswap flops, Uniswap pops

Chainlink, one of the darlings of the DeFi market, experienced another tough week as the consistent drop from $19 continued. One of the major beneficiaries of the DeFi boom, it was entirely caught up in the hype of the summer. As I highlighted in a newsletter last month (Bitcoin reserves drop – hodlers gonna hodl), the fallback we saw in Chainlink following its $19 achievement was always on the cards, and further retracements could be imminent. Although it did hit $17 at the end of last month, the pull backs have also been notable and we are now sitting at a much more appropriate $9.38.

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