Crypto Markets Nervous Ahead Of CPI Data

Anxiety ahead of the monthly CPI data release from the U.S. on Thursday morning kept crypto markets nervous. Overall crypto market capitalization is currently steady at $2.15 trillion. Among the top 10 cryptocurrencies, Bitcoin, Solana, Toncoin and Avalanche declined whereas Ethereum, BNB, XRP, Dogecoin, Cardano and TRON recorded gains over the past 24 hours.

Market concerns can be attributed to the expected spike in inflation. Despite recent disinflationary trends, the month-on-month headline consumer price inflation which was flat in the previous month is seen edging up to 0.1 percent in June. The core component of the same is seen steady at 0.2 percent.

Markets however expect the headline annual CPI to decline to 3.1 percent from 3.3 percent in the previous month. The core component thereof is expected to be steady at 3.4 percent.

Federal Reserve Chair Jerome Powell had in his recent Congressional testimony indicated that the central bank wouldn’t wait for inflation to hit 2 percent before cutting rates. He nevertheless reiterated the need for more data to conclusively prove disinflationary trends. The producer price inflation readings for June due on Friday, as well as the 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 due on July 31. Markets overwhelmingly expect the Fed to maintain status quo on rates in the next FOMC.

Bitcoin slipped half a percent in the past 24 hours to trade at $58,272.43, around 21 percent below the all-time-high. The 24-hour trading range was between $58,698 and $57,120. Bitcoin is holding on to weekly gains of 1.5 percent and year-to-date gains of 38 percent. Bitcoin currently dominates 53.4 percent of the overall crypto market.

Latest data from Farside Investors showed net inflows of $147 million to Bitcoin Spot ETF products in the U.S. on Wednesday, versus net inflows of $216 million on Tuesday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with inflows of $58 million.
Meanwhile Bitcoin enthusiasts have been excited following reports of Republican Presidential nominee Donald Trump announcing his attendance at the Bitcoin 2024 Conference scheduled for the end of the month.

Ethereum rallied 1.6 percent 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 on to weekly gains of 0.2 percent and year-to-date gains of 38 percent. Ether currently dominates 17.5 percent of the overall crypto market.

4th ranked BNB (BNB) gained 1.4 percent overnight to trade at $531.74. BNB’s gains came amidst a U.S. court dismissing SEC’s contention that secondary sales of BNB were in violation of securities law.

5th ranked Solana (SOL) slipped 0.85 percent in the past 24 hours to trade at $142.28.

7th ranked XRP rallied 1 percent overnight to trade at $0.4458. With a loss of more than 27 percent in 2024, XRP is the highest-ranking crypto to trade in the red zone on a year-to-date basis.

8th ranked Toncoin (TON) lost 2.5 percent overnight to trade at $7.15. TON has gained 209 percent in 2024.

9th ranked Dogecoin (DOGE) gained 0.4 percent overnight to trade at $0.1091.

10th ranked Cardano (ADA) gained 2.2 percent overnight to trade at $0.393, restricting year-to-date losses to less than 34 percent.

32nd ranked Stacks (STX) topped overnight gains with a surge of 11.8 percent. 53rd ranked Lido DAO (LDO) followed with gains of more than 7 percent.

45th ranked Immutable (IMX) topped overnight losses with a decline of close to 5 percent. 12th ranked Avalanche (AVAX) followed with losses of 4.8 percent in the past 24 hours. 48th Bittensor (TA) also shed 4.7 percent in the past 24 hours.

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