Markets
ETF flows support crypto market sentiment
Cryptocurrencies have seen gains in the last 24 hours, markets reacted positively to strong inflows into Bitcoin Spot ETF products in the US. Markets also cheered Fed Chairman Jerome Powell’s testimony in the Senate, where he acknowledged the risk of maintaining tight monetary policy for too long.
The sale of seized Bitcoin by regulators in Germany, however, capped gains. Fed Chairman Jerome Powell’s testimony before the House of Representatives on Wednesday, as well as the release of June CPI data scheduled for Thursday, have triggered cautious optimism in cryptocurrency markets.
Data on Bitcoin Spot ETF products in the US provided by Farside Investors showed net inflows of $216 million on Tuesday, compared to $295 million received on Monday. Month-to-date inflows are now close to $750 million.
Powell’s remarks that more good data could open the door for interest rate cuts were also welcomed by digital asset markets. The Fed chief’s comments came as markets are gearing up for the release of June CPI data on Thursday. The annual core US consumer price inflation data for June, due out on Thursday, is expected to fall to 3.1% from 3.3% the previous month. The core component is seen steady at 3.4%. The month-on-month core inflation, which was flat the previous month, is, however, expected to rise to 0.1% in June. The core component of the same is seen steady at 0.2%.
Since a reduction in interest rates would reduce the opportunity cost of holding cryptocurrencies that typically do not yield interest, crypto markets are also expecting inflation to soon fall to the Fed’s 2% target.
The next FOMC is 21 days away and markets overwhelmingly expect a pause in the Fed’s July review. However, rate cut expectations, as revealed in the CME FedWatch tool, rise to 77 percent for the Fed’s September review.
Amid the resumption of flows into Bitcoin Spot ETF products as well as fresh rate cut expectations, the overall cryptocurrency market cap rose to $2.14 trillion from $2.11 trillion a day earlier.
Bitcoin now dominates 53.5 percent of the overall crypto market, followed by Ethereum, which accounts for 17.5 percent. Stablecoins make up 7.7 percent of the market, leaving a residual 21.3 percent market share for altcoins.
Bitcoin is currently trading at $57,840.53, having added 1 percent overnight. The leading cryptocurrency has traded between $59,417 and $57,014 over the past 24 hours. However, it is weighed down with weekly losses of over 4 percent.
Ethereum rose 1.1 percent overnight but has fallen 6.1 percent over the past 7 days. The leading alt-coin hit a low of $3,026 and a high of $3,129 over the past 24 hours.
4th-placed BNB (BNB) gained over 2 percent overnight but is struggling with weekly losses of nearly 6 percent. BNB is currently changing hands at $526.46.
No. 5 Solana (SOL) rose 0.7 percent overnight to trade at $141.89. SOL, however, is down about 1 percent over the past week.
7th-ranked XRP (XRP) surged over 1 percent overnight, exchanging hands at $0.4373. With losses of nearly 29 percent, XRP is the highest-ranked cryptocurrency to trade with losses year-to-date.
Eighth-ranked Toncoin (TON) added 0.3 percent over the past 24 hours, which helped limit weekly losses to just over 7 percent. With gains of close to 3 percent, TON is the highest-ranking cryptocurrency to trade with gains on the 30-day horizon. TON’s year-to-date gains of 215 percent are the best among the top 20 cryptocurrencies.
The 9th-ranked Dogecoin (DOGE) gained half a percent on an overnight basis to trade at $0.1087. Despite weekly losses of nearly 9 percent, the top-ranked meme coin has gained over 21 percent in 2024.
10th-ranked Cardano (ADA) is up 3.4% overnight and is currently trading at $0.3839.
Cat-themed meme coin Mog Coin (MOG), ranked 94th overall, led overnight gains with a nearly 15% surge.
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