Market Wrap: Uniswap, Federal Reserve in Focus as Dogecoin Rests

The largest cryptocurrency’s push past $20K this week has turned the market more bullish. The outlook hinges on the Federal Reserve’s messaging next week – about its plans for December.

By Bradley Keoun, Glenn Williams, Jocelyn Yang

Nov 1, 2022 at 8:57 p.m. UTC

Updated Nov 14, 2022 at 6:49 p.m. UTC

CDCROP: Unicorn float pool beach Uniswap (Unsplash/Modified by CoinDesk) — UNI, the token of unicorn-symboled Uniswap, got more attention Tuesday. (Unsplash/Modified by CoinDesk)

Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

Follow @Liqquidity on Twitter

Glenn Williams

Glenn C Williams Jr, CMT is a Crypto Markets Analyst with an initial background in traditional finance. His experience includes research and analysis of individual cryptocurrencies, defi protocols, and crypto-based funds. He owns BTC, ETH, UNI, DOT, MATIC, and AVAX

Follow @@GwilliamsJr_CMT on Twitter

Jocelyn Yang

Follow @_jocelynyang_ on Twitter

Price Action

Bitcoin (BTC) held steady during U.S. trading hours, gaining 0.3%, even as the Standard & Poor’s 500 Index slipped.

Crypto traders are looking ahead to the next big economic event, the Federal Reserve’s monetary policy decision due out Wednesday at 2 p.m. ET.

“Personally I’m not ready to 100% call a bottom here yet, as I would like to see exactly how the economy reacts in the fourth quarter to a 3% to 4% federal funds rate,” Nick Mancini, director of research at Trade the Chain, told CoinDesk TV.

One thing that may or may not be discussed but should be: As speculation mounts over when the Federal Reserve might pivot dovish, some economists, including former U.S. Treasury Secretary Lawrence Summers, are warning that any such move might lead to weakness in the U.S. dollar versus other global currencies. That, in turn, could drive up prices for imports – possibly frustrating the Fed’s primary goal of bringing down inflation.

The CoinDesk Market Index rose 0.1%. Dogecoin (DOGE), the biggest gainer in October when its price doubled, slipped 0.5% on the first day of the new month.

Latest Prices

● CoinDesk Market Index (CMI): 1,026.83 +0.5%

● Bitcoin (BTC): $20,440 +0.3%

● Ether (ETH): $1,576 +0.7%

● S&P 500 daily close: 3,856.10 −0.4%

● Gold: $1,651 per troy ounce +0.9%

● Ten-year Treasury yield daily close: 4.05% −0.0

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Technical Take

Money Supply Growth Is Falling, an Encouraging Sign for Fed Progress

By Glenn Williams Jr

Crypto observers hoping for a more dovish turn in monetary policy may look optimistically at a percentage decline in the M2 money supply growth from a year ago.

The parabolic increase in U.S. money supply during 2020 is largely behind the current inflationary environment. The reduced supply growth could be evidence that recent Federal Reserve measures are working.

Bitcoin and ether were trading sideways on Tuesday, albeit slightly to the green, a day ahead of the Federal Open Market Committee’s latest interest rate decision.

Read the full crypto markets analysis here.

Altcoin Roundup

Elon Musk Tweet Sparks Flurry of Twitter-Themed Dogecoin Tokens: A new class of Shiba Inu-inspired tokens was birthed on BNB Chain and Ethereum Tuesday following a related tweet by technology billionaire Elon Musk. The price of over 67 of such tokens dropped more than 90% following their issuance, on-chain data shows. Read more here.
Uniswap Surpasses Bitcoin as Fed Rate Hike Decision Nears: Uniswap is a decentralized crypto exchange (DEX) that runs on the Ethereum blockchain. Its native token UNI was recently up 5.1% over the past 24 hours and has risen more than 10% during the past week. Read more here.

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