Bitcoin Sink Near $29.2K; U.S. Data Triggers Bond Selloff
By Laxmikant Khanvilkar
Leading virtual digital assets (VDA) are sinking lower during the Asian session, after the strong U.S. retail sales report for July is driving a forecast of speedy economic growth which in turn fuels prospects of Federal Reserve hiking interest rates, instead of broadly anticipated measure of beginning the reversal phase.
Feeling the macro jitters, both Bitcoin (BTC) and Ethereum (ETH) witnessed nearly a per cent fall in the prices.
Recently, BTC was trading 0.67% lower at $29,205.25. The largest cryptocurrency by market capitalisation continues to lead the consolidation among crypto following the PayPal’s decision to launch its own stablecoin.
Ether, the second largest crypto in market value, retreated lower as well. It was recently changing hands at $1,827.60, a drop of 0.96%.
Leading the decline were altcoins such as Ripple’s (XRP), Dogecoin (DOGE), Polkadot’s (DOT), Polygon’s (MATIC) and Uniswap’s (UNI), each sporting losses of more than 4% over the past 24 hours.
Analysts are saying that the crypto’s trending lower due to the selloff in bond market has resumed, sending global bond yields higher and the risk of more central bank tightening has grown.
The global crypto market cap, decreased 1.27% to $1.16 tn, over the last 24-hours. On the other hand, the total crypto market volume rose 6.86% to $30.07 bn. The total volume in DeFi is currently $2.86 bn and all stablecoins $28.29 bn, representing 9.50% and 94.06% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance increased 0.28% to 49.02%.
IC15 index, the barometer of top fifteen tokens, eased 0.74% to 38,427.
Meanwhile, as the markets have started to discount monetary tightening measures, it’s impact on broader financial markets are clearly prevalent. The Nasdaq, S&P 500, and Dow Jones Industrial Average each fell more than 1% on Wednesday following the economic news, with the 10-year and 30-year U.S. Treasury rates each rising to fresh 2023 highs.
Will the central banks resume rate hike soon? We have to wait till next month but it is surely denting the prospect of cryptocurrencies for now.
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