Markets
Cryptocurrency Markets Slump After Inflation Data Meets Expectations
Analysts are optimistic that Ethereum ETFs could launch in June.
Cryptocurrency markets were trading lower on Friday, following inflation data that fell in line with expectations.
According to Bitcoin data, Bitcoin fell 2%, with Ether losing 1% and Solana about 2.5%. CoinGecko. Meme coins also saw losses, with Dogecoin, Dogwifhat, Shiba Inu and FLOKI falling between 3% and 8%.
The personal consumption expenditure (PCE) price index, which excludes food and energy costs, rose by 0.2% in the month, in line with the expectations of Dow Jones analysts. The PCE tracks changes in the prices of goods and services consumed by individuals.
US stock markets also fell following the release of the inflation report. The S&P 500 and Nasdaq fell 0.7% and 1.7% respectively.
Ether’s relative strength is likely driven by optimism that Ethereum Exchange Traded Funds (ETFs) can be operational by the end of June.
Ethereum ETF Outlook
Bloomberg analyst Eric Balchunas believes the SEC will have an additional round of fine-tuning for Ethereum ETF applications.
“Launch at the end of June [is] a legitimate possibility [although] keeping my July 4th release date,” he She said.
BlackRock, the world’s largest asset manager, is in movement closer to the launch of its Ethereum spot ETF. On May 28, the company filed an amended registration statement with the U.S. Securities and Exchange Commission (SEC). The updated Form S-1 is a necessary step before the fund can begin trading. This filing came nearly a week after the SEC approved Forms 19b-4 for eight Ethereum ETFs, including BlackRock’s iShares Ethereum Trust.
ETF inflows decline
Data from Farside Shows that Bitcoin ETF inflows are cooling again.
Total Bitcoin ETF inflows for the week of May 20 were significantly higher at $1 billion compared to $122 million for the week of May 27, excluding today.
The highest daily inflow this week occurred on May 30 with $49 million.