Markets
Bitcoin Awaits PCE Inflation Report
Bitcoin consolidates above $61,000 with no clear directional bias ahead of the release of the Fed’s preferred inflation gaugethe core Personal Consumption Expenditures (PCE). Economists expect the PCE to show that the annualized inflation rate slowed to 2.6% in May from 2.8%, according to Bloomberg. While that would be the lowest reading in more than two years, it is still above the Fed’s 2% target. “A lower-than-expected number would suggest a continued decline in inflation and potentially boost cryptocurrencies in the coming months,” said Valentin Fournier, a digital asset analyst at consultancy brn.
Solana’s SOL Token Outperformed Ethereum’s ETH Token This Week after the New York-based investment management firm VanEck presented an S-1 registration statement for your VanEck Solana Trust. “We believe the native token, SOL, functions similarly to other digital commodities such as bitcoin and ETH,” wrote VanEck head of digital asset research Matthew Sigel in a post on X arguing that SOL is a commodity, not a security. The consensus is that CME futures are a prerequisite for ETF approval, which SOL currently does not have. Meanwhile, ether futures have been trading on the CME for some time and spot ether ETFs will likely begin trading in the US in July. For now, the path of least resistance for the SOL/ETH ratio appears to be on the higher side. The SOL/ETH ratio is up 12% this week, more than reversing last week’s decline in a bullish engulfing candlestick pattern.
Blockchain bettors were skeptical about President Joe Biden’s performance in the first debate of the 2024 presidential election, pushing former president Donald Trump chances of winning the November vote to up to 67%. A contract asking bettors to declare the outcome of the election currently has close to $188 million at stake, with about $23 million on Trump and $21 million on Biden. A Trump victory in November could signal a shift toward more favorable regulatory conditions for the cryptocurrency industry, according to analysts at Bitfinex. “A Trump administration can prioritize creating a clear and supportive regulatory framework encouraging innovation and investment in the cryptocurrency sector. This could lead to greater adoption of digital assets and more robust integration of cryptocurrencies into the financial system, potentially spurring further growth in the industry,” Bitfinex analysts said in an email.