Daily News | Central Banks Attempt to Boost Market Confidence, Bitcoin Fluctuates Pre-FOMC, DWF Labs Invests in Synthetix

Crypto Daily Digest: Central Banks Worldwide Take Action to Boost Market Confidence, Bitcoin and Ether Decline

Good morning, traders! Let’s seize this Tuesday relentlessly and make the most of it! 🚀

After the recent financial turmoil, central banks worldwide have taken measures to increase market confidence, which has resulted in a rise in stock prices. The S&P 500 index has seen gains in all 11 groups, and US lenders have recovered after a 15% decline the previous week. Many investors believe that the banking turmoil is not ic and that a solution will be found to contain the damage.

Furthermore, last week the Federal Home Loan Bank issued $304bn in debt, almost double the $165bn that liquidity-hungry lenders borrowed from the Federal Reserve. The FHLB is a US government-sponsored entity that provides funding to other banks and financial institutions to support housing finance and economic development. This large debt issuance indicates that financial institutions are seeking alternative sources of funding, such as the FHLB, as liquidity from the Federal Reserve becomes scarce.

Asian equities are also expected to rise following the gains on Wall Street. Australian stocks have already opened 0.9% higher, and futures for Hong Kong shares point to solid gains. However, there are still some concerns, as seen by First Republic Bank’s 47% slump to a record low. Despite this, the dollar is holding losses as the Federal Reserve may adopt a more cautious policy approach regarding interest rates due to the recent financial turmoil, which has fueled speculation about a slower pace of tightening from major central banks worldwide.

On the other hand, Bitcoin‘s price fluctuated around $28,000 on Monday as investors awaited the US central bank’s interest rate decision on Wednesday. The cryptocurrency had briefly climbed above $28,400 earlier in the day following the US Federal Reserve’s announcement that it was partnering with other major central banks to ensure a steady Flow of US dollars in the global financial .

Reports from Ark Invest indicate that Bitcoin‘s recent rally suggests that it behaves as a “safe haven” asset, similar to during the banking crises in the US and Europe. Ark Invest believes that regulators should have focused more on the traditional banking ’s centralized and opaque points of failure.

Meanwhile, CoinShares’ recent report revealed that digital asset investment products have experienced net outflows for six consecutive weeks, totaling $95 million for the week ending on March 17. Over the past six weeks, total outflows amounted to $424 million. The combined outflows for Bitcoin, Ether, and multi-assets amounted to $130 million, with Bitcoin receiving $35 million in inflows primarily due to short bets on a price decline. The report suggests that investors may have withdrawn from digital assets to ensure liquidity during the banking crisis. However, Ethereum saw inflows of $1.3 million after experiencing outflows of $13 million over the past week.

Topic of the Day: DWF Labs Acquires $15 Million Worth of SNX, Boosting Synthetix Liquidity

Web3 investment and quantitative trading firm DWF Labs has invested $20 million in Synthetix, a tokenized asset issuance platform. The investment includes the acquisition of $15 million worth of Synthetix’s native token, SNX, which will be used to increase its liquidity and market-making across centralized and decentralized exchanges. Synthetix allows users to tokenize real-world assets into derivatives called Synths, which are traded using a pooled collateral model that generates fees for SNX collateral providers.

DWF Labs will integrate Synthetix’s perpetual futures into its trading business and purchase another $5 million worth of SNX once the integration is completed. Synthetix’s v2 platform surpassed $400 million in perpetual swap daily trade volume in March 2023.

The partnership could have significant implications for both Synthetix and its governance token, SNX. Firstly, the increased liquidity and market-making could potentially increase the demand for SNX. Secondly, the integration of Synthetix’s perpetual futures into DWF Labs’ trading business could increase the adoption of Synthetix’s platform and generate more fees for SNX collateral providers. Finally, DWF Labs’ commitment to purchasing another $5 million worth of SNX could increase the value of the token and signal confidence in the platform’s future growth and success.

Overall, the partnership and investment could be positive for Synthetix and SNX, increasing demand, adoption, and confidence in the platform’s future.

Synthetix (SNX) $2.9789 (+0.19%) - Neutral Outlook

Overview:

• Closest hourly support zone: 2.980 - 2.971
• Closest hourly resistance zone: 3.022 - 3.051
• Key Level: 2.971 (Monthly Low of Oct. 2020)

When observing SNX on a daily timeframe, it becomes apparent that the coin has been rejected from the weekly resistance channel a total of 10 times since March 5th. This suggests that the struggle between the bulls and bears is becoming increasingly fierce, although the bulls still have an advantage as they are able to keep the price of SNX within the channel. On a closer look at the 4H timeframe, a symmetrical triangle pattern has emerged, formed by recent highs and lows. This pattern typically indicates an upcoming breakout in either direction.

However, recent candlesticks indicate that the upside has experienced significant resistance, while the downside has been more stable in terms of momentum. Moving forward, if SNX manages to close within the supply zone between 3.088 and 3.201, which was established by the last 4H high’s wick, the bulls may set their sights on the monthly level of 3.486.

However, the coin is likely to experience high volatility as it retests a higher supply zone between 3.215 and 3.380. Conversely, if SNX closes below the monthly level of 2.971, the bears may focus on three potential targets: 1. between 2.841 and 2.826; 2. between 2.810 and 2.778; and 3. 2.5395.

Hourly Resistance zones

1. 3.022 - 3.051
2. 3.088 - 3.201
3. 3.215 - 3.380

Hourly Support zones

1. 2.980 - 2.971
2. 2.920 - 2.875
3. 2.841 - 2.778