Markets
Crypto markets fall despite cooling US inflation
Analysts predict spot Ethereum ETFs could launch next week.
Cryptocurrency markets traded lower on Friday on new data indicating that inflation is slowing in the United States.
Bitcoin is trading 1.4% lower at $60,600, while Ethereum fell 1.3% and Solana fell 3.6%, reversing most of the ETF-fueled gains, despite a second archiving from 21Shares today.
SOL Price
Among the biggest gainers, Akash Network (AKT) rose 7%, and Ethereum Name Service (ENS) rose 5%. Fetch.ai (FET), Athena (ENA), and Quant (QNT) are down 5% or more.
According to a report from the Department of Commerce released on Friday, inflation in May fell to its lowest annual rate since May 2021.
The core PCE price index rose 0.1% in May, meeting Dow Jones expectations. On an annual basis, the core PCE price index rose 2.6%. The PCE index is crucial for traders as it is closely watched by the Federal Reserve and influences its interest rate decisions.
“Today’s data will likely help provide additional confidence to the FOMC that the US economy continues along what continues to be a bumpy disinflationary path,” said Michael Brown, Senior Research Strategist at Pepperstone.
“However, it remains true that ‘one swallow does not make a summer’, so it is unlikely that the May PCE numbers will open the door to a [rate] they cut on their own, although they push the door a little more to open it a little.”
Crypto sentiment was also boosted by asset management firm VanEck archiving for a Solana spot ETF on Thursday.
Ethereum ETFs
On July 26, Reuters reported that spot Ether ETFs could enter the market as early as the first week of July.
Michael Van de Poppe, CEO of MN Trading, he said that a “significant bloodbath” has occurred in altcoin markets.
“However, the Ethereum ETF is on the horizon, through which I expect to see a rollback of many of the tokens in the Ethereum ecosystem,” he said.
According to Cryptocurrency Fear and Greed Indexmarket sentiment has shifted into the fear zone amid recent volatility.
Farside Data indicates that flows slowed on Thursday to just $13 million across all spot Bitcoin ETFs.
CoinGlass Data confirm that in the last 24 hours, 32,173 traders were liquidated for a total of $76 million.