BTC, ETH, and others are falling. Find out why 👇🏽

Hello to you too and Happy Onam! 

And as you enjoy your sadya, enjoy today’s Switch Daily. 😇

Yep, we know! Our portfolio is in the red too…but we’re gonna be bold and Hold, Hold, Hold. 💪

Here’s what we will talk about today: ̰

• Market pulse

• Why is crypto falling?

• Hot news

• Meme of the day

Market pulse 📈

The market is slightly less bitter but is it better? 

Earlier this week, winter came and Oh was it bitter-cold?! However, sunny summer days seem to be coming closer, but there may be rain before a rainbow. The global crypto market cap is up by 4.6% in the past 24 hours. Following this, the dominant crypto, Bitcoin, is up by nearly 3%, floating above its $19,000 support level. Furthermore, at press time, Ethereum was sky-high at nearly 8% with market price at over $1,600. But, the broader crypto market is moving in a downward trajectory with BTC drop of more than 12% in just two weeks.

Why is the market volatile?📉

Currently, we are going through two historical world-altering events

• The Ethereum Merge

• The Cardano Vasil Fork

Here’s what we know:

This isn’t just a crypto thing — the stock markets across the globe have been facing a downturn too. For example, the US stock index S&P 500 took a hit of nearly 3% in the past week too.

So, let’s just zoom out and take a macro look at the global events:

• Increasing inflation rates across the globe

Just when we were beginning to think that inflation is short-term, Jerome Powell, the chairman of the US Fed, made it clear that rates are expected to go higher to keep inflation in check. Europe’s inflation rates are also soaring and had reached an all-time high of 8.9% in July.

• Europe’s energy crisis

Besides high inflation, Europe has another headache. The European energy crisis is worsening as Russia, Europe’s main supplier, decreases natural gas exports. Natural gas prices in Europe skyrocketed 28% on Monday morning, reaching €274 (₹21,544) per megawatt hour.

• Weakening Chinese economy

Over the past few months, China has been going through a major economic crisis because of its falling real estate sector. Additionally, China has enforced strict Covid-19 lockdown restrictions in many regions, including Chengdu (the manufacturing hub of China).

These events and other economic factors could be creating a domino effect on the market.

Okay, it's reasonable that the stock market is tumbling, but why is the crypto market falling too?

Crypto markets have a solid bro kinda relationship with the US stock markets, i.e., if Wall street sheds, crypto also sheds. Since crypto is more volatile, the impact is much higher.

So, what’s the takeaway?

Well, the markets work in cycles — bulls and bears are inevitable. We’re in a bear cycle now, so just stay put, maybe, and this too shall pass🤞🏽.

What’s making the headlines today? 📰

🛖Mining firm Hut 8 has over 8,000 BTC

Despite the crypto market depression, the Bitcoin (BTC) holdings of Hut 8, a Canadian mining firm, have reportedly crossed the 8,000 mark. Read More.

🇦🇷Argentinian governing body to release NFT collection for charity

Argentina-based freemasons are releasing an NFT collection, dubbed CryptoMasons, according to a Twitter announcement. The collection, comprising 77 digital artworks, will be the first official NFT project supported by a local Grand Lodge. Read more.

®️ 2022 already has more trademark applications for crypto assets than last year.

The number of US trademarks filed for cryptocurrencies, Non-Fungible Tokens (NFTs), Web 3.0, and the metaverse this year has nearly doubled in the past year. In particular, the month of March saw the largest filings across categories. Read more.

📁The crypto market is maturing: KPMG report

The crypto and blockchain sector continues to show signs of maturity and is managing to attract investment, despite global and ecosystem challenges, according to KPMG’s Pulse of Fintech H1’22 report released in September. Read more.

Twitter Gyan 🐦

Let’s talk about the Ethereum Merge! Join the BuildersTribe founders and CoinSwitch in-house experts as they unpack the merge in today’s Twitter Spaces. 

Meme of the day…

Well, that's a wrap for today!

See you, tomorrow folks, 👋