Markets
Cryptocurrency Markets Crash Despite Cooling US Inflation
Analysts predict that spot Ethereum ETFs could launch next week.
Cryptocurrency markets were trading lower on Friday as fresh data showed inflation was slowing in the United States.
Bitcoin is trading down 1.4% at $60,600, while Ethereal is down 1.3%, and Solana fell 3.6%, reversing most of the ETF-fueled gains despite a second archiving from 21Shares today.
Price SOL
Among the biggest gainers, Akash Network (AKT) rose 7%, while Ethereum Name Service (ENS) jumped 5%. Fetch.ai (FET), Athena (ENA), and Quant (QNT) are down 5% or more.
According to a report from the Department of Commerce released May inflation fell to its lowest annual rate since May 2021 on Friday.
The core PCE price index rose 0.1% in May, meeting Dow Jones expectations. On a year-over-year basis, the headline PCE price index rose 2.6%. The PCE index is critical to traders as it is closely monitored by the Federal Reserve and influences its interest rate decisions.
“Today’s data will likely help give the FOMC further confidence that the U.S. economy is continuing along what remains a bumpy disinflationary path,” said Michael Brown, Senior Research Strategist at Pepperstone.
“However, the fact remains that ‘one swallow does not make a summer’, so the May PCE data are unlikely to open the door to a [rate] they cut themselves, but leave the door ajar a little longer.”
Cryptocurrency sentiment was also supported by asset management firm VanEck archiving for a Solana spot ETF on Thursday.
Ethereum ETFs
July 26, Reuters reported spot Ether ETFs could enter the market as early as the first week of July.
Michael Van de Poppe, CEO of MN Trading, She said that a “significant bloodbath” has occurred in altcoin markets.
“However, the Ethereum ETF is on the horizon, through which I expect we will see a turnaround for many tokens in the Ethereum ecosystem,” he said.
According to Cryptocurrency Fear and Greed IndexMarket sentiment has moved into the fear zone due to recent volatility.
Data from Farside indicate inflows slowed Thursday to just $13 million across all spot Bitcoin ETFs.
CoinGlass data he confirms that in the last 24 hours 32,173 traders were liquidated for a total of 76 million dollars.