BTC, ETH Retreat Lower; Fed Fear Stifle Debt Cheer
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs), most popular known as cryptocurrencies, retreated lower as the optimism created by the U.S. debt ceiling deal was offset by signs of sticky inflation, which has brought interest rates prospect back on the table.
The Personal Consumption Expenditures price index – the Fed’s preferred inflation gauge – read hotter-than-expected in April, ramping up expectations that the Fed will hike rates further in June.
The post-debt ceiling rally in the crypto market has ended, with bitcoin and ether declining this morning in Asian trade. Bitcoin is trading day down 1.57% at $27,752 while ether is down 0.92% to $1,898.
The global crypto market cap eased 1.57% to $1.15 tn, over the last 24-hours. Total crypto market volume $30.28 bn, stands reduced by 5.06%. The total volume in DeFi is currently $2.31 bn, 7.62% of the total crypto market volume. The volume of all stablecoins is now $27.88 bn, which is 92.09% of the total crypto market volume. Bitcoin’s dominance is currently 46.52%, a decrease of 0.30% over the day.
IC15 index, the barometer of top fifteen tokens, has eased 0.92% to 38,160.
Analysts say that with Central Bank Digital Currencies being a new wedge issue in Florida’s political landscape, the national stage is the next logical step. Crypto has come up in elections worldwide, such as South Korea and Thailand, and President Joe Biden mentioned it when discussing debt deal negotiations.
Observers suggest lack of definitive narrative as key reason for crypto struggle. The absence of a defining narrative – is it a risk asset, or a hedge against risk? – has made for patternless price swings and confused investors.
Meanwhile, the Commitment of Traders report shows that asset managers have increased their open long positions in bitcoin after falling in the two prior weeks. The 24-contract increase follows a reduction of 162 contracts the week prior.
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