U.S. CPI Data Fails To Lift Crypto Market Sentiment

Cryptocurrency prices remain subdued despite there being no major surprises in the consumer price inflation updates from the U.S. on Wednesday.

Expectations for the Federal Reserve’s interest rate decision in September has narrowed to the 25-basis points range. The CME FedWatch tool currently shows a 78-percent probability for a 25-basis points rate cut in September. It was 49 percent a week earlier. On the contrary the probability of a 50-basis points rate cut in September has fallen to 22 percent from 51 percent a week earlier.

Data released by the U.S. Bureau of Labor Statistics on Wednesday had shown annual headline inflation declining to 2.9 percent in July. It was expected to be steady at 3 percent. The core component declined as expected to a 3-year low of 3.2 percent from 3.3 percent in June. Inflation on a month-on-month basis rebounded as expected to 0.2 percent from -0.1 percent in June. The core component also edged up on expected lines to 0.2 percent from 0.1 percent in June.

Overall crypto market capitalization is currently at $2.04 trillion, versus $xx trillion a day earlier and $2.1 trillion a week earlier.

Nevertheless, the past week has not been positive for most of the top-ranked cryptocurrencies. Only 17 of the top 100 cryptocurrencies are trading with gains of more than 1 percent over the past week. On the contrary, more than 70 percent of the top 100 cryptocurrencies have shed more than 1 percent over the past week. Among the top 10 non-stablecoin cryptocurrencies, only BNB (BNB) and Tron (TRX) are trading with weekly gains.

Meme category market capitalization also shed 7.3 percent overnight to $36.1 billion. The AI & Big Data category recorded an overnight decline of 5.4 percent, dragging market capitalization to $21.9 billion.

Bitcoin traded between $59,838.65 and $56,161.59 in the past 24 hours. It is currently trading at $58,072.23 implying overnight decline of 2.3 percent, weekly losses of 3.8 percent and a year-to-date addition of 37.4 percent. At its current price, the leading cryptocurrency is trading 21 percent below the all-time high recorded in March 2024.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net inflow of $11 million on Thursday versus outflows of $81 million a day earlier.

Ethereum shed 2.7 percent in the past 24 hours to trade at $2,583.10, around 47 percent below the all-time high. Amidst marginal weekly losses of close to half percent, the leading altcoin’s year-to-date gains are now above 13 percent.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed a net outflow of $39 million on Thursday versus inflows of $11 million a day earlier.
4th ranked BNB (BNB) slipped 2.3 percent overnight to trade at $516.60.

5th ranked Solana (SOL) declined 4 percent overnight and 9.7 percent in the past 7 days. SOL is currently trading at $138.81.

7th ranked XRP (XRP) lost 1.8 percent overnight and 3.4 percent in the past week to trade at $0.5594. The cryptocurrency issued by Ripple Labs is grappling with year-to-date losses of more than 9 percent.

8th ranked Toncoin (TON) erased 3.3 percent overnight and 2.2 percent in the past week to trade at $6.45.

Dogecoin (DOGE), ranked 9th overall has also declined 4.5 percent in the past 24 hours to trade at $0.09919.

10th ranked Cardano (ADA) lost 3.7 percent overnight and 5.1 percent over the past week. ADA is currently trading at $0.3249.

88th ranked Tether Gold (XAUt) is the only cryptocurrency among the top 100 to trade with overnight gains of more than a percent. XAUt has gained 1.3 percent overnight.

49th ranked dogwifhat (WIF) topped overnight losses with a decline of more than 12 percent. 25th ranked Pepe (PEPE) followed with overnight losses of more than 11 percent. 54th ranked Bonk (BONK), 100th ranked Ethena (ENA) and 59th ranked Celestia (TIA) have all lost more than 9 percent overnight.

Meanwhile, two IMF executives have in a recent blogpost argued for a tax increase on crypto mining and artificial intelligence data centers in order to curb emissions and generate additional government revenue. Authors Shafik Hebous and Nate Vernon-Lin have on Thursday recommended usage of tax policy to tackle the surging carbon emissions from AI and crypto. The document comes in the context of the growing footprint of crypto mining and data centre activity that accounts for 2 percent of global electricity use and nearly 1 percent of global emissions. They have also quoted a recent IMF working paper which found that crypto mining could generate 0.7 percent of global carbon dioxide emissions by 2027. Alarmed by the climate impact of the two activities, the authors have proposed the tax system as one way to steer companies toward curbing emissions.

For More Cryptocurrency News, visit rttnews.com