Polkadot and Cardano course under pressure ahead of Jackson Hole central bank event
The central bank event in Jackson Hole (Wyoming), which is anticipated with great anticipation, could also have an impact on the prices of Bitcoin, Ether and Co. Immediately before the start of the meeting, the most important cryptocurrencies, measured by market capitalization, are under pressure. Cardano (ADA), the third most important digital currency in terms of market size, has lost over six percent to $ 2.60 per day. Polkadot (DOT) is cheaper by around five hundredths to less than $ 25 per unit.
The event runs from Thursday to Saturday, although investors should tap into Fed chair Jerome Powell’s speech on Friday afternoon for clues about future monetary policy. A more restrictive monetary policy could strengthen the global reserve currency, the US dollar, and as a result, at least temporarily, take the wind out of the sails of cryptocurrencies. With the outbreak of the coronavirus pandemic in the west, crypto assets were increasingly viewed in many places as a supposed hedge and diversification instrument. Right up to its peak, Bitcoin was last able to climb an all-time high of around $ 65,000 in April, which corresponds to an increase of over 1,600 percent within 13 months.
Profit-taking and consolidation at a remarkable level
As before, profit-taking and thus a consolidation at a considerable price level characterize the market. From a technical point of view, prices continue to call for a cool down.
In addition, technical sales weigh on the courses. Investors who last held a prospect behind the sidelines for entry opportunities could soon get back in. In my opinion, the stock exchange lights remain on green.
However, a turnaround in interest rates should not leave investors in the crypto markets indifferent. In addition to regulatory concerns from the USA, this scenario is currently the largest safety factor.
Most recently, news about the transatlantic expansion of PayPal’s service to the UK made headlines. The US payment service is expanding the holding, buying and selling of assets such as Bitcoin or Ether.
The latest plans by the US trading platform Coinbase have also made stockbrokers more confident of late. According to their own information, they want to include up to half a billion dollars in their balance sheet and in future automatically put ten percent of profits in crypto investments.
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Polkadot and Cardano course: it could go on like this
For currencies from the back rows such as DOT or ADA, the downward pressure could continue until tomorrow. It remains important that a turnaround in interest rates is postponed further. This development should tend to make cryptocurrencies more attractive.
Overall, Cardano investors also keep an eye on the implementation of the technical improvement. On September 12th, they want to activate smart contract functionalities on the underlying blockchain, they say. Investors are increasingly hoping to move up to become the industry leader, Ethereum.
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