Bitcoin choppy ahead of Fed meet
By Laxmikant Khanvilkar
Virtual digital assets (VDA) look to muster support from the rally in technology stocks – they often form a positive correlation – but the likelihood of Federal Reserve keeping interest rates higher for longer is causing jitters among investors. Apparently, prices of the leading cryptocurrency remain vulnerable to the selling pressure.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, struggled to hold $63,000 mark as it faced intermittent selling. The top coin was recently trading at $63,277 down 0.55%.
Although, the strong earnings performance of technology stocks ramped up hopes of perky demand for artificial intelligence based technology, this will keep supporting tech earnings in the coming quarter, the immediate term market focus remains on the Fed meet later this week and jobs data.
Analysts see the elusive U.S. interest rate and sticky inflation as a perfect combination to propel investors buying gold and Bitcoin.
However, the latest data of the spot Bitcoin ETFs is suggesting a different story. Throughout the week ending on April 26, 2024, Bitcoin Spot ETFs in the U.S. experienced notable fluctuations in net flows.
Moreover, these ETFs registered a massive weekly net outflow of $328 million as institutional investors cut down on their BTC positions in a bit to avoid a potential post-halving crash.
The weak sentiments reverberating in broader crypto markets.
Ethereum (Ether), the second largest cryptocurrency by market capitalisation, has managed to latch onto $3,200 level and was recently changing hands at $3,281 adding 0.8%. These gains can be attributed to the Ethereum founder Vitalik Buterin defending the decision to transition ETH from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus.
Elsewhere, SOL, ADA, AVA, XRP, alongside certain meme coins quoted in the negative territory.
The global crypto market cap decreased 0.14% to $2.36 trillion in the last 24 hours. Similarly, the total crypto market volume fell 10% to $51 billion. Total volume in DeFi is currently $5 billion, and all stablecoins are $45 billion, representing 10% and 90%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.9%, down 0.08% over the day.
The IC15 index, the barometer of the top fifteen tokens, eased 0.35% to 80,143.
Meanwhile, the market hopes to get a reload from the U.S. Treasury’s refinancing announcement, detailing the three-month borrowing needs and the balance to be held in the Treasury General Account, is due on May 1. Maintenance or a decline in Treasury General Account could trigger a rally in risky assets.
You need to login in order to Like
