Pre Open US - Cryptocurrency 26 July 2023

The meme cryptocurrency Dogecoin (DOGE) experienced a significant 10% surge on Tuesday, marking its largest single-day gain since April 3. Over the past two weeks, DOGE has impressively gained 25%, driven by speculations of potential usage as a payment method on Twitter's rebranded platform. While the rest of the crypto market appears to be entering a summer lull, DOGE stands out as the standout performer, with other crypto themes taking a backseat.

In a significant legal development, Singapore's High Court recognized cryptocurrencies as property capable of being held on trust. This ruling came about in a case involving the Seychelles-based exchange, Bybit, and one of its contractors, Ho Kai Xin. Bybit accused Ho of breaching her employment contract and misusing her position to transfer more than 4.2 million of Tether's USDT stablecoin to her personal addresses. Additionally, she also transferred some fiat currency to her own bank account. The presiding Judge Philip Jeyaretnam affirmed that like any other asset, USDT can be held on trust.

Bitcoin, on the other hand, showed little movement at the beginning of the week, but market participants closely monitored its volatility as macro triggers approached. Of particular interest was the announcement of Fed rates, which was expected to lead to erratic and potentially unpredictable short-term price movements for BTC, following the traditional pattern. Investors eagerly awaited both the announcement itself and the subsequent commentary from Fed Chair Jerome Powell for further insights.

From a technical standpoint, Bitcoin (BTC) broke the 29700-support level that had been holding for one month, pushing the price towards the next target at 28000, where the 100MA may also offer support. Beyond that, the 27300 level will be the subsequent support, located at the lower parallel of the current long bullish channel.