Thu. Sep 21st, 2023
Slow US inflation data inspires hope for a rally in cryptocurrency prices

Bitcoin fell on Friday morning in Asia, dropping below the $29,500 threshold. Ether also fell as the other 10 unstable altcoins traded mixed. Market experts expect Bitcoin and Ether to hold steady in the short term ahead of a possible rally backed by easing macroeconomic conditions. The Forkast 500 NFT Index rose, while US core inflation data came in lower than expected. These reinforce bets that the Federal Reserve will pause interest rate hikes, lifting global stocks.

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Bitcoin is down 0.39% over the past 24 hours at $29,439.41 as of 6:30 am in Hong Kong, but is up 0.95% for the week, according to CoinMarketCap. data. The world’s largest cryptocurrency by market capitalization is hovering around the $29,500 line after reaching $29,688 overnight.

Ether also fell 0.09% to $1851.14 but posted a weekly increase of 1.08%.

“While we digest CPI numbers, Bitcoin and Ethereum have barely moved,” said Lucy Ho, chief trader at Hong Kong-based digital asset management platform Metalva. “We expect the major pairs BTC and ETH to continue to trade in a narrow range, with the potential for an upward trend.”

The US Consumer Price Index (CPI) released by the Labor Department on Thursday rose 0.2% in July, pushing the inflation indicator to 3.2%. This is lower than the expected 3.3% previously reported Reuters.

“The CPI headline is significant, which indicates that we are probably at the end of a hiking curve from the Fed,” said Michael van de Poppe, CEO of Amsterdam-based cryptocurrency trading firm MN Trading.

“Crypto-natives are always eagerly looking at this event for predictions, and therefore, since the chart is lower than expected, a situation where the price starts to rise is a potential situation,” said Van de Poppe. He added that investors should now examine US PPI data released on Friday as another key measure of wholesale inflation.

Analysts also traded August 13 – the next deadline for application of US-based ARK Investment Management’s spot bitcoin exchange-traded fund (ETF) – as another key date in the market calendar.

ARK initially submitted the application in April, and then submitted a further modification in July.

Kathy Wood, CEO, ARK Invest Tell Bloomberg reported Monday that the US Securities and Exchange Commission will likely approve several spot digital currency ETF applications simultaneously, if they decide to give them the green light.

Another top 10 mixed stablecoin traded on Friday. Solana led the winners, adding 1.59% to $24.70 for a weekly gain of 9.56%. Tron also rose 1.15% to $0.07717, adding 0.52% in the past seven days.

The total market capitalization of cryptocurrencies decreased by 0.24% over the past 24 hours to $1.17 trillion, while trading volume also decreased by 26.24% to $26.47 billion.

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