Markets

How it will affect cryptocurrency markets

Published

8 months ago

14 May, 2024

How it will affect cryptocurrency markets

A critical data release is imminent and has the potential to shake up the cryptocurrency market in a big way. This isn’t your average economic report – this information could mean the difference between skyrocketing profits and unexpected losses for your cryptocurrency holdings.

Is it time to celebrate or prepare for impact? Read on to find out!

1. US inflation indices: a brief introduction

US inflation indices measure changes in the prices of goods and services over time. They provide valuable data for understanding inflationary trends in the economy. These indices help policymakers, businesses and individuals evaluate the rate of inflation and its impact on purchasing power and overall economic stability.

2. Key inflation indices will be released soon

Here are the main inflation indices that will be published this month.

US core inflation rate on a monthly basis

It measures the monthly change in overall prices, excluding volatile food and energy costs, providing insight into underlying trends in inflation.

US core inflation rate year-on-year

It tracks year-over-year changes in core inflation, offering a long-term view of price stability, unaffected by short-term fluctuations in food and energy prices.

It reflects the monthly change in overall consumer prices, including food and energy, capturing short-term fluctuations in inflationary pressures.

It indicates the year-over-year change in overall consumer prices, providing a broader perspective on inflation trends, inducing long-term effects.

It measures the average change over time in the prices paid by urban consumers for a basket of goods and services, which represents the overall cost of living.

Seasonally adjusted version of the CPI, which eliminates the effects of seasonal variations and offers a clearer view of underlying inflation trends.

It tracks changes in prices received by producers for goods and services, serving as an indicator of inflationary pressures in the production process.

It measures the monthly change in producer prices, providing information on short-term fluctuations in production costs for producers.

It indicates the monthly change in producer prices, excluding the volatility of food and energy costs, giving a clearer picture of underlying inflationary pressures in manufacturing.

It tracks year-over-year changes in key producer prices, providing a long-term view of inflationary trends in the manufacturing sector, unaffected by short-term fluctuations.

3. Historical analysis of the main inflationary indices

Let’s do a historical analysis of each inflation index.

3.1. US Core Inflation Rate Monthly: Historical Analysis

At the beginning of the year, the monthly US core inflation rate was approximately 0.392%. In February it recorded a decline to 0.358%. In March it increased slightly to 0.359%. The forecast is that this month it will be 0.3%.

3.2. US core inflation rate year-on-year: historical analysis

At the start of the year, the year-over-year U.S. core inflation rate was approximately 3.9%. In February it fell to 3.8%. In March it recorded no changes and remained around 3.8%. The forecast is that it will fall further to 3.7%.

3.3. US monthly inflation rate: historical analysis

In January 2024, the inflation rate in the United States was around 0.3%. It recorded a notable increase in February, when it went from 0.3% to 0.4%. In March it showed no change, having remained at the 0.4% level. The forecast is for it to fall to 0.3% this month.

3.4. US Inflation Rate YoY: Historical Analysis

In January 2024, the year-over-year U.S. inflation rate was approximately 3.1%. In February it increased slightly to 3.2%. In March it increased sharply to 3.5%. The forecast is that it will remain at the 3.5% level this month too.

3.5. US CPI: historical analysis

In January 2024, the US CPI was approximately 308,417 points. Since then its growth has been constant. In February it reached the level of 310,326 points and in March it touched the level of 312,332 points. The forecast is that this month it will exceed 313.9 points.

3.6. US CPI sa: historical analysis

In January 2024, the US consumer price index was nearly 309,685 points. The rate has been steadily increasing since then. In February it exceeded the threshold of 311,064 points. In March it reached the level of 312.23 points. The forecast is that the trend will continue like this, pushing it up to the threshold of 313.2 points.

3.7. US PPI: historical analysis

In January 2024, the US PPI was approximately 142,676 points. February saw a sharp increase, going from 142,676 to 143,466, quickly. The trend also continued in March, when it reached the level of 143,687 points. The forecast is that there will be no change in trend and the level of 143.9 points will even be reached.

3.8. US PPI MoM: historical analysis

In January 2024, US PPI MoM was nearly 0.4%. In February it increased sharply to 0.6%. In March, however, it recorded a sharp decline, when it went from 0.6% to 0.2%. The forecast is that this month too it will remain around 0.2%.

3.9. US Core PPI Monthly: Historical Analysis

In January 2024, the US Core PPI MoM was 0.5%. It has been steadily decreasing since then. In February it had fallen to 0.3%. In March it reached 0.2%, marking a sharp decline from 0.5% in January. The forecast is that this month too it will remain around 0.2%.

3.10. US Core PPI YoY: Historical Analysis

In January 2024, the year-over-year U.S. core PPI was nearly 2%. Since then its increase has been constant. In February it reached the 2.1% range. In March it reached 2.4%. The forecast is that this time it will be around 2.4%.

4. US Inflation Indexes Provide Insights into the Future Prospects of Cryptocurrencies: A Predictive Analysis

Historical analysis of major inflationary indices in the United States provides valuable insights into the future prospects of the cryptocurrency market. Looking at the trends:

US core inflation rate monthly and yearly

Stable core inflation rates indicate economic stability. If future rates match predictions, this would likely support confidence in the cryptocurrency market. However, if rates were to fall, this could lead to a slight decline in enthusiasm for cryptocurrencies as a hedge against inflation. Conversely, a rise could spur demand for cryptocurrencies, particularly as a hedge against inflation, potentially driving prices higher.

US inflation rate on a monthly and yearly basis

Similar to core inflation, overall inflation rates show stability. If future rates were in line with predictions, it would likely maintain confidence and stability in the cryptocurrency market. A decrease in inflation rates could have a slight dampening effect on enthusiasm for cryptocurrencies, while an increase could strengthen the attractiveness of cryptocurrencies as a hedge against inflation, potentially increasing demand and price.

Steady growth in the consumer price index signals healthy demand. If the next CPI levels meet predictions, it would mean continued growth and stability in the cryptocurrency market. A decrease in CPI levels could indicate an economic slowdown, leading to minor corrections in cryptocurrency prices. Conversely, rising consumer price index levels could strengthen the case for cryptocurrencies as a hedge against inflation, potentially driving up demand and prices.

The mixed trend in the producer price index suggests economic uncertainty. If the upcoming PPI levels match predictions, uncertainty in the cryptocurrency market may persist. A decrease in PPI levels could increase investor confidence in cryptocurrencies, leading to moderate price increases. Conversely, a rise in PPI levels could increase uncertainty, prompting cautious investment and potential shifts into more stable assets.

The stability of the main producer price index indicates confidence in economic fundamentals. If the upcoming Core PPI levels align with forecasts, it would likely strengthen confidence in the cryptocurrency market. A decrease in core PPI levels could ease inflationary pressure, resulting in moderate cryptocurrency price adjustments. Conversely, an increase could raise concerns about inflationary risks, potentially impacting demand and prices for cryptocurrencies.

Final note

The upcoming inflation data is set to be a turning point for the cryptocurrency market.

Stable or expected trends in core inflation rates, headline inflation rates, consumer price indices, and producer price indices will likely maintain confidence and stability in the cryptocurrency market. However, deviations from these forecasts could lead to adjustments in investor sentiment and potentially impact demand and prices in the cryptocurrency sector.

Will they signal economic stability and increase confidence in cryptocurrencies, or will they spark uncertainty and price fluctuations? Stay tuned.

Also check: Tether and RAK DAO join forces to promote Bitcoin and stablecoin education in the UAE

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Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

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Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

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Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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