Stock Market Indexes

How do the Fed’s interest rates impact the crypto market?

Cointelegraph analyst and writer Marcel Pechman explains how the U.S. Federal Reserve’s interest rates impact the crypto market.

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on the day-to-day crypto activity.

In today’s episode, crypto analyst Pechman analyzes the United States Federal Reserve interest rate and its relationship with cryptocurrency markets. For instance, high-interest rates are detrimental to risk assets. However, investors usually price today’s action on how the economy will be in six months or longer.

Viewers will learn why trusting charts and indicators can be misleading, as anyone can pick timeframes and scales that favor their biases and opinions. Pechman shows this in real-time by literally adjusting the scales and time frames to match his school of thought.

The episode continues by explaining the correlation between Bitcoin and the stock market — especially when investors fear a recession is coming or the cost of capital favors fixed income — followed by a deep dive into volatility indicators, including the stock market volatility index (VIX). 

Pechman goes on to explain how the most common volatility metric is backward-looking and even more complex instruments, such as the VIX indicator, should be interpreted.

To close the Macro Markets show, Pechman will apply his expert knowledge to explain real-life examples from gold markets, Tesla stocks and news articles in a straightforward and non-technical manner.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday at 12:00 pm ET.

The creator of the FTSE100 launches indices for crypto

The constituent coins that make up the indexes have not yet been released, but it does include performance data for the first three quarters of 2022.

FTSE Russell, creator of the FTSE100 stock index, has released a series of indexes whose constituents are digital assets, according to a press release released via its website on Nov. 29. The series has been produced in cooperation with Digital Asset Research. FTSE Russell is a subsidiary of the London Stock Exchange.

The 2022 performance of the FTSE Digital Asset Index – Large/Mid, as stated in the index’s fact sheet

Indexes have been used in the stock market throughout its history to track particular areas of the market. But there were relatively few made up of cryptocurrencies prior to 2021.

The FTSE Digital Asset Index series appears to be the first issued by a company based in the United Kingdom It joins the list of crypto indexes that have been released by United States and German companies since early 2021, including the S&P Cryptocurrency Index series, the Nasdaq Crypto Index, and the CMC Crypto 200 Index series by Soloactive.

The new series contains eight indexes total, including one each for large cap, mid cap, small cap and micro cap coins, as well as four indexes that combine coins from multiple market cap sizes. The company has not released a list of constituents for each index yet, but it has released a fact sheet for each one showing performance data for Q1-Q3, 2022.

In the press release, Arne Staal, CEO at FTSE Russell, argued that the new indexes will help to bring transparency to the crypto market, stating:

“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”

According to the company’s website, the new indexes rely on a standardized set of 21 criteria to determine which institutions can be counted on to prove accurate pricing data. Once a set of institutions is decided on, the price data from these institutions is used to determine which coins go in each index and to determine the overall performance of the index.

Next few weeks are ‘critical’ for stock market and Bitcoin, analyst says

Alessio Rastani, a cryptocurrency analyst and trader, shares his outlook on crypto, stocks and the forex market for the next weeks.

The stock market’s movements in the next few weeks will be critical for determining whether we are heading towards a short-term recession or a long-term one, according to forex trader and crypto analyst Alessio Rastani.

During the October-December 2022 period, the analyst expects to see the S&P rallying. “If that bounces or rally fails and drops back down again, then very likely, we’re entering a long-term recession and something very close to similar to 2008,” said Rastani in the latest Cointelegraph interview.

According to the analyst, such a recession could last until 2024 and would inevitably negatively impact the price of Bitcoin (BTC). 

Talking about the latest pound sterling crisis, Rastani opined that its principal cause is the rally of the U.S. dollar, which is putting pressure on most other fiat currencies, including the yen and the euro. However, in Rastani’s view, the U.S. dollar is approaching the top.

“Once we see a clean break, a sustained break, of 111.5 and 110 levels on the dollar index, then I think the top is in for the dollar. And then I’m looking for a multi-month decline in the dollar back to 104 to the 100 level on the dollar index,” he explained. 

Check out the full interview on our YouTube channel and don’t forget to subscribe!