The cryptocurrency market has been in the green all day because worries about the economy aren’t as bad as they used to be. BitQT, which is now the top trading platform, has made it possible for anybody to trade in cryptocurrencies.
When this article was written, Bitcoin (BTC) was trading at $23,900, which was a 4% increase over the last 24 hours. Ethereum (ETH), on the other hand, was trading at $1,800, which was a 9% increase over the same period. Even though investors seem to be putting more money into altcoins, Bitcoin is still doing better than the second cryptocurrency.
In July, the Consumer Price Index (CPI) went down. This happened because prices for most goods, especially in the energy sector, went down. On the other hand, Rick Rieder, Chief Investment Officer at BlackRock, says that inflation is “still going at a worryingly high rate.”
In the long term, this could continue to hurt risky digital assets, but it could make the Federal Reserve less aggressive with its monetary policy. Rieder said the following about the possible long-term benefits of less inflation:
Rieder says that inflation may decrease or improve over the next few months. This could put an end to the uncertainty in the crypto market and give these assets enough support to get back to their previous highs.
Could Bitcoin and other cryptocurrencies continue to go up?
This shows how likely people on the market will buy things while they wait for more information about their economic worries.
The most recent CPI number could give us some clues, and as this article is being written, the supply of USDT on exchanges has reached 42% for the first time since April 2022. At that time, the market was about to go on an incredible bull run that would take it to highs that had never been seen before.
When is the best time to trade cryptocurrencies?
Day trading is a risky trade method used for short-term investments. You want to buy cryptocurrencies, sell them, and then cash out any profits before you sleep.
There is a lot of evidence that trading in cryptocurrencies happens during regular market hours in the United States. This means that most of the money people in the East put into bitcoin went to people in the West.
An Ethereum transaction could cost more or less gas depending on how busy the network is. So, traders with smaller portfolios who want to reduce the time it takes to make a trade might want to think about this.
Experts have found fewer transactions around midnight Eastern Time (ET), but they are much bigger. There is also a lot more going on around 1700hrs ET, which used to be the most expensive time to do business.
But the work done to make trading on Ethereum easier has created a catch-22, perhaps in an attempt to lower the gas price.
People seem to be trying to trick other people by doing less business during the busiest times of the day. But because of this, busy times got even busier and more expensive to go to.
The main point is that using a multi-timeframe analysis when trading might help you spot long-term trends before you decide when to enter and leave the trade in the short term. Multiple time frame analysis lets you figure out which way trades are likely to go by putting two charts next to each other or looking at the values of indicators. We’ll talk about these two ways in more depth below. Before using MTFA, you should know people’s most common mistakes.
Taxes give people who trade in cryptocurrencies a second chance to make money. Crypto assets can be used in these ways because they are not subject to the same “wash” rules as other types of financial assets. The problem is that trading in cryptocurrency is hard to understand, so it can be hard to find these opportunities.
ZenLedger can help you determine how to use tax losses to lower your tax bill if you trade in cryptocurrencies.