WASHINGTON (dpa-AFX) - Cryptocurrencies are trading firm above the flatline even as world markets wait anxiously for the PCE-based inflation readings from the U.S., seen revealing a downward bias in prices. Positive inflows to Bitcoin Spot ETF products in the U.S. for the third consecutive day supported sentiment for cryptocurrencies in general. Markets also cheered the easing in inflation in France during the month of May.
Data for May to be released by the U.S. Bureau of Economic Analysis on Friday morning is expected to show the year-on-year PCE Price Index edging down to 2.6 percent from 2.7 percent earlier. The core component thereof is also expected to decline to 2.6 percent from the previous month's reading of 2.8 percent. The month-on-month PCE Price Index is seen flat as compared with a rise of 0.3 percent in April. The core component thereof is seen dropping to 0.1 percent from 0.2 percent in April.
Data for the same period released by the U.S. Bureau of Labor Statistics a fortnight ago had revealed headline annual consumer price inflation at 3.3 percent and core component thereof at 3.4 percent. The month-on-month reading revealed flat prices while the core component excluding the volatile food and energy prices had increased by 0.2 percent.
Despite hints of a rate cut in 2024 given alongside the previous FOMC, recent hawkish comments by Fed speakers have added an element of uncertainty to the monetary policy framework. The PCE-based readings assume significance as it is widely perceived as the Fed's preferred inflation gauge. Though the FOMC had initially focused on CPI inflation, after extensive analysis, it now relies on the PCE inflation as it captures inflation (or deflation) across a wide range of consumer expenses to assess changes in consumer behavior.
Net inflows to Bitcoin Spot ETF products in the U.S. on Thursday also boosted sentiment. Data from Farside Investors showed a net inflow of $12 million on Thursday as inflows to Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO) and ARK 21Shares Bitcoin ETF (ARKB) more than offset the outflows of $11 million from Grayscale Bitcoin Trust ETF (GBTC).
Despite overnight gains in the 6-currency Dollar Index, overall crypto market capitalization has increased to $2.28 trillion. It was $2.27 trillion a day earlier.
Bitcoin is currently trading at $61,463.78 implying overnight gains of 0.33 percent, weekly loss of 4 percent and a year-to-date addition of more than 45 percent. Bitcoin touched a high of $62,293.86 and a low $61,059.69 in the past 24 hours and currently dominates 53.1 percent of the overall crypto market.
Ethereum gained 1.4 percent in the past 24 hours to trade at $3,431.85. The 24-hour trading range was between $3,482.96 and $3,391.87. Though Ether has slipped 1.9 percent in the past week, it is holding on to year-to-date gains of close to 46 percent. Ether currently dominates 18.1 percent of the overall crypto market.
4th ranked BNB (BNB) added 0.37 percent overnight to trade at $574.91.
5th ranked Solana (SOL) rallied 5.3 percent in the past 24 hours to trade at $145.67. Amidst euphoria surround the prospect of a Solana-based ETF product, SOL has gained more than 10 percent in the past week. Year-to-date gains have also surged to more than 43 percent.
Despite overnight gains of more than 1.5 percent, 7th ranked XRP continues to trade with losses over the larger time horizon. XRP has shed 2.5 percent in the past week and 9.8 percent over the past 30 days. With a loss of close to 24 percent in 2024, XRP continues to be the highest-ranking crypto among the top 100 to trade in the red zone on a year-to-date basis.
8th ranked Toncoin (TON) added half a percent overnight to trade at $7.66. With weekly gains of 8.3 percent, 30-day addition of 17.7 percent and year-to-date surge of 228 percent, TON is the highest-ranking cryptocurrency to trade emphatically in the green zone.
9th ranked Dogecoin (DOGE) gained 2.8 percent overnight to trade at $0.1257. The highest-ranking meme coin has added 1.4 percent in the past week and more than 36 percent in 2024.
10th ranked Cardano (ADA) added 1.5 percent overnight to trade at $0.3854. ADA has however erased more than 38 percent so far in 2024.
76th ranked Akash Network (AKT) topped overnight gains with an addition of close to 15 percent. 97th ranked BOOK OF MEME (BOME), 14th ranked Polkadot (DOT), 96th ranked Conflux (CFX) and 11th ranked Avalanche (AVAX), all followed with overnight gains of more than 11 percent.
62nd ranked Fetch.ai (FET) is the greatest overnight laggard among the top 100 cryptocurrencies with a decline of close to 11 percent. 87th ranked SingularityNET (AGIX) followed with losses of 9.7 percent.
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