WASHINGTON (dpa-AFX) - Crypto market capitalization remained firm above the flatline whereas outflows from Bitcoin Spot ETF products rose ahead of the crucial CPI update and FOMC decision scheduled for Wednesday.
In data to be released on Wednesday morning, the U.S. Bureau of Labor Statistics is expected to show the headline annual consumer price inflation for May steady at 3.4 percent. The core component thereof is seen edging down to 3.5 percent from 3.6 percent in the previous month. The month-on-month Consumer price inflation is expected to fall to 0.1 percent from 0.3 percent in the previous month. The core component thereof is however seen steady at 0.3 percent.
Though the Fed is widely expected to hold rates steady in the FOMC scheduled for Wednesday afternoon, markets are keenly waiting for its forward guidance on rate cuts. Going by the CME FedWatch tool, rate cut expectations are strong at 53 percent for the review in September. Markets assign a higher rate cut probability of 67 percent for the FOMC in November and 89 percent for the FOMC in December.
The Dollar Index which measures the Dollar's strength against a basket of six currencies and often considered a proxy for interest rate expectations is currently at 105.15, versus the previous close of 105.23.
Ahead of the policy update by the Fed, yields on ten-year U.S. treasuries have eased by 0.09 percent and on five-year treasuries by 0.07 percent.
Crypto market sentiment remains firm amidst the monetary policy anxiety, lifting market capitalization to 0.64 percent above the flatline. However, more than 25 percent of the top 100 cryptocurrencies are trading with overnight losses in excess of 1 percent.
The past week also has not been a strong week for most cryptocurrencies. A stronger-than-expected additions to U.S. payrolls that implied a robust labor market and triggered fears of price pressures emanating from the labor market dampened sentiment for risk assets including cryptocurrencies. Only 6 of the top 100 cryptocurrencies have recorded gains of more than 1 percent over the past seven days. On the contrary, more than 60 of the top 100 cryptocurrencies have slipped more than 10 percent over the past week. 13th ranked TRON (TRX) is the highest-ranking cryptocurrency to trade with gains in the past week.
Likewise, though ETF frenzy and rate cut expectations have bolstered crypto market sentiment considerably in 2024, only around 55 of the top 100 cryptocurrencies are trading with year-to-date gains of more than a percent.
Bitcoin has rallied 1.4 percent overnight despite outflows from Bitcoin Spot ETF products in the U.S. rising to $200 million on Tuesday from $65 million a day earlier. Grayscale Bitcoin Trust (GBTC) recorded outflows of $121 million followed by ARK 21Shares Bitcoin ETF (ARKB) that witnessed outflows of $57 million. As per latest data from Farside Investors, none of the Bitcoin Spot ETF products in the U.S. recorded inflows on Tuesday.
The leading cryptocurrency touched a low of $66,123.60 in the past 24 hours, a level last recorded on May 20.
With an overnight addition of 0.29 percent, Ethereum is currently trading at $3,543.05, almost 28 percent below its all-time high. Ether ranged between $3,561.14 and $3,434.75 in the past 24 hours.
4th ranked BNB (BNB) gained 1.5 percent in the past 24 hours to trade at $614.20. The native token of the Binance.com cryptocurrency exchange is however saddled with weekly losses of 12.2 percent.
5th ranked Solana (SOL) slipped 1.1 percent in the past 24 hours and 11.4 percent in the past week to trade at $152.84.
7th ranked XRP (XRP) edged down 0.4 percent overnight, raising the losses to 8.7 percent on a weekly basis and to 21 percent in 2024. XRP (XRP) is the highest-ranking cryptocurrency to trade with losses on a year-to-date basis.
Dogecoin (DOGE), ranked 8th overall has shed 0.9 percent in the past 24 hours to trade at $0.141.
9th ranked Toncoin (TON) rallied 3.4 percent overnight to trade at $7.07.
10th ranked Cardano (ADA) declined 0.9 percent overnight and 7.3 percent over the past week.
91st ranked Oasis (ROSE) topped overnight gains among the top 100 cryptocurrencies with a surge of more than 9 percent.
87th ranked Akash Network (AKT) and 60th ranked Celestia (TIA) are the top laggards with a decline of more than 6 percent.
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