Will crypto prices continue to decline or will they rise again? This is the state of crypto today as of September 7-9, 2022.
The prices of major cryptocurrencies were observed to weaken on Wednesday (7/9/2022), when investors were increasingly worried about the potential for global inflation to rise again due to the cessation of the operation of Europe's largest natural gas pipeline.
Using data from CoinMarketCap at 09:00 UTC, Bitcoin plunged 4.88% to a price position of US$ 18,772.41/coin. Meanwhile, Ethereum fell 6.82% to a position of US$ 1,520.63/coin.
The following are the movements of the 10 main cryptocurrencies that experienced a decline on September 7:
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Bitcoin corrected to the US$ 18,000 range, amid market concerns about a potential global economic slowdown due to high inflation and the hawkish stance of the United States (US) and European central banks regarding monetary policy. The correction in Bitcoin, Ethereum, and other cryptocurrencies occurred after the release of service activity data in the US which tended to improve in August 2022. ISM's US service Purchasing Manager's Index (PMI) data reportedly rose to 56.9 last month, better than last July's 56.7. This figure is certainly better than the consensus predicting the PMI for services at 55.1. This release shows the strongest service activity over the last 4 months.
 According to Edward Moya, an analyst from Oanda, September is a period that market participants tend to avoid, historically. He also said that the improving US service activity data prompted the US central bank (Federal Reserve/The Fed) to be more confident in raising its benchmark interest rate again. "September this year has been a challenging month as a resilient economy paved the way for the Fed to tighten further," Moya told CoinDesk. "Retail traders are starting to panic again as"meme"' and crypto stocks fall under pressure. Bitcoin is breaking below its key technical levels," Moya added.
Meanwhile, on Ethereum, after briefly surging on Tuesday morning and also briefly outperforming Bitcoin, Ethereum reversed course and plummeted. The excitement of Ethereum on Tuesday morning continued as investors welcomed the upgrade process called Ethereum Merge, or The Merge, where the upgrade process changes the protocol from the previous Proof-of-Work (PoW) to Proof-of-Stake (PoS), which is more energy efficient. . Later this month, the Fed will again announce its benchmark interest rate policy. Market participants anticipate the Fed will raise its benchmark interest rate by 75 basis points (bp) with a probability of reaching 72%. Apart from the Fed, investors are also waiting for the European Central Bank (ECB) to announce monetary policy in the near future. On Thursday this week, the ECB bosses will meet and decide on their benchmark interest rate.
The consensus compiled by Trading Economics predicts the ECB will raise its benchmark interest rate by 75 basis points (bp) to 1.25%. This expectation, apart from responding to high inflationary pressures, also has the potential to increase. Moreover, Russia is now increasingly limiting gas supplies to Europe. Not long ago, the gas "SOE" of the Red Bear Country, Gazprom, stated that it would stop the flow of gas to Europe for an unknown time for maintenance reasons. Even recently, the economic sanctions imposed by the West were the cause of the cessation of gas supplies to Europe for an undetermined time.
"The pumping problem arose as a result of sanctions imposed on our country by several Western companies, including Germany and the United Kingdom," Kremlin spokesman Dmitry Peskov said Monday, quoted by Interfax. As a result of this, European gas prices soared and their currency, the Euro, weakened. The euro has now fallen below the US dollar. The strengthening of the dollar is also weighing on the performance of stocks in the US and crypto markets today.
And here are the movements of the 10 main cryptocurrencies that have increased on September 9 today :
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