Markets
Cryptocurrency markets tumble amid disappointing US economic data
Bitcoin fell after lackluster U.S. economic data and hawkish comments from Dallas Fed President Lori Logan.
Cryptocurrency markets fell sharply Friday morning, reversing an earlier rally that had pushed the world’s largest cryptocurrency as high as $64,212 this week.
Bitcoin (BTC) is trading at $61,015, down 2% over the past 24 hours. Ether (ETH) loses almost 4%, while Dogecoin (DOGE) collapses by more than 3.5%. Most of the digital assets in CoinGecko’s top 100 recorded losses.
The catalysts for the decline in cryptocurrency prices were disappointing US economic data and hawkish remarks from Federal Reserve Bank of Dallas President Lori Logan.
“It’s just too early to be thinking about cutting rates,” Logan said Friday at an event in New Orleans. “I need to see some of these uncertainties resolved about the path we’re on and we need to remain very flexible with policy and continue to look at the data that comes in and watch how financial conditions are evolving.”
Consumer confidence data released Friday morning showed a significant rise in inflation expectations, dampening market enthusiasm. The preliminary May reading of the University of Michigan’s consumer confidence index was 67.4, well below the Dow Jones estimate of 76 and representing the lowest reading in six months.
Since their July 2023 meeting, Fed officials have kept the benchmark U.S. interest rate in a steady range of 5.25% to 5.5%.
The token unlocks the chassis
Crypto analytics firm 10x Research reported Wednesday that more than $2 billion worth of tokens will be put into circulation in the next two months.
The report notes that $97 million of Aptos (APT), $79 million of Starkware (STRK), $94 million of Arbitrum (ARB), $330 million of Avalanche (AVAX), and nearly $1 billion of SUI (SUI), among others, are slated to be unlocked.
“A rapid succession of nearly $2 billion in token unlocks over the next ten weeks could lower the altcoin market,” 10x Research said in a report seen by The Defiant.
According to Michael Van de Poppe, CEO of MN Trading, Bitcoin is currently at the low end.
“This is technically the area where you would rather see it hold, so the bullish momentum continues and the range holds,” he said. She said on
Grayscale Bitcoin Trust Sees Inflows
In May, the Grayscale Bitcoin Trust (GBTC) saw inflows by $66.9 million, a change after seeing continued outflows totaling more than $17.5 billion over the past 78 days following its Jan. 11 conversion to an ETF.
Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted the largest amount of capital, totaling nearly $15.5 billion to date.