Bitcoin Hover Near $30K; U.S. Data In Focus
By Laxmikant Khanvilkar
Virtual digital assets (VDA) have maintained soft stance over the last 24-hours, as investors opted for caution ahead of key U.S. macroeconomic data release scheduled this week. CPI, PPI, Jobless Claims, Consumer Sentiment are some of the key data points will be published later this week, which would help investors ascertain the interest rates trajectory going forward. Federal Reserve sounded hawkish in its latest minutes of the rate setting committee. The expectations are slowly built into short-term treasury yield spiking to highest since 2006. It must be noted that treasury yields and cryptocurrencies move in opposite direction.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, dropped near $30,000 mark, as result of rally in treasury yield. The oldest cryptocurrency was recently trading at $30,167.43, down 0.46%. It had scaled to 13-month peak, above $31,500 last week after the multiple spot bitcoin ETF filings boosted investor optimism. However, a recent report by JP Morgan thwarts such expectations saying that the approval of a Spot Bitcoin ETF might bring to the crypto sector.
Ethereum, the second largest cryptocurrency, was languishing below $1,900 mark. It last quoted 0.59% lower at $1,856.79.
It looks like the VDAs will face a tough challenge this week with little support from the fundamental level while technical indicators are facing stiff resistance.
Meanwhile, as informed last week, the treasury yields of two-year note are more sensitive to interest rate expectations. Their recent surge to multi-year highs suggests traders see the Fed extending its rate hike campaign. Rate hike in the upcoming FOMC meet will have a negative influence on crypto market.
The global crypto market cap decreased 1.02% to $1.17 tn, over the last 24-hours. On the other hand, the total crypto market volume increased 3.89% to $20.59 bn. The total volume in DeFi is currently $1.75 bn and all stablecoins is now $18.46 bn, representing 8.49% and 89.67% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 49.97%, an increase of 0.08% over the day.
IC15 index, the barometer of top fifteen tokens, eased 0.23% to 40,120.
Meanwhile, the U.S. Total Public Debt Outstanding surged by over $1 trillion, which has sent ripples through the financial world, catching the attention of both crypto enthusiasts and financial analysts. The rising U.S. debt could be a signal for investors to turn to Bitcoin, a decentralized currency that operates independently of any government’s financial decisions, analysts said.
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