Markets
Crypto Markets Nervous Ahead of CPI Data
The anticipation ahead of the release of the monthly US CPI data on Thursday morning has left crypto markets on edge. The overall cryptocurrency market cap is currently stable at $2.15 trillion. Among the top 10 cryptocurrencies, BitcoinSolana, Toncoin and Avalanche fell while EthereumBNB, XRPDogecoin, Cardano, and TRON have all seen gains in the past 24 hours.
Market concerns can be attributed to the expected spike in inflation. Despite recent disinflationary trends, monthly consumer price inflation, which was stable in the previous month, is expected to rise to 0.1% in June. The core component of the same is expected to remain stable at 0.2%.
Markets, however, expect the annual core CPI to fall to 3.1% from 3.3% the previous month. Its core component is expected to be steady at 3.4%.
Federal Reserve Chairman Jerome Powell indicated in his recent testimony to Congress that the central bank would not wait for inflation to reach 2% before cutting rates. However, he reiterated the need for more data to conclusively prove disinflationary trends. Producer price inflation readings for June, due on Friday, as well as second-quarter GDP readings and PCE-based inflation readings due a fortnight later, are expected to guide the Fed in its next interest rate review, scheduled for July 31. Markets overwhelmingly expect the Fed to maintain the status quo on rates at the next FOMC.
Bitcoin has dropped half a percent in the past 24 hours to trade at $58,272.43, about 21 percent below its all-time high. The 24-hour trading range was between $58,698 and $57,120. Bitcoin is holding weekly gains of 1.5 percent and year-to-date gains of 38 percent. Bitcoin currently dominates 53.4 percent of the overall cryptocurrency market.
Latest data from Farside Investors shows net inflows of $147 million for Bitcoin Spot ETF products in the U.S. on Wednesday, versus net inflows of $216 million on Tuesday. The Fidelity Wise Origin Bitcoin Fund (FBTC) topped out with inflows of $58 million.
Meanwhile, Bitcoin enthusiasts were excited after reports that Republican presidential candidate Donald Trump announced his presence at the Bitcoin 2024 Conference, scheduled for later this month.
Ethereum is up 1.6% in the past 24 hours to trade at $3,142.13. The 24-hour trading range was between $3,148 and $3,056. Ether is holding weekly gains of 0.2% and year-to-date gains of 38%. Ether currently dominates 17.5% of the overall cryptocurrency market.
Fourth-ranked BNB (BNB) gained 1.4 percent overnight to trade at $531.74. BNB’s gains came amid a U.S. court dismissing the SEC’s claim that secondary sales of BNB violated securities law.
5th-ranked Solana (SOL) is down 0.85% in the last 24 hours, trading at $142.28.
The 7th-ranked XRP rose 1 percent overnight to trade at $0.4458. With a loss of over 27 percent in 2024, XRP is the highest-ranked cryptocurrency to trade in the red zone on a year-to-date basis.
Toncoin (TON), which ranked 8th, lost 2.5% overnight and was trading at $7.15. TON has gained 209% in 2024.
9th place in the Dogecoin ranking (DOGE) gained 0.4% overnight and was trading at $0.1091.
10th place Cardano (ADA) gained 2.2% overnight to trade at $0.393, restricting year-to-date losses to less than 34%.
Stacks (STX), which ranked 32nd, led the overnight gains with an 11.8% increase. Lido DAO (LDO), which ranked 53rd, followed with gains of over 7%.
45th-ranked Immutable (IMX) bucked overnight losses with a nearly 5% decline. 12th-ranked Avalanche (AVAX) followed with losses of 4.8% over the past 24 hours. 48th-ranked Bittensor (TA) also lost 4.7% over the past 24 hours.
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