Coin Monitor – Investors Await US PMI Data
By Shubham Joshi
Virtual digital assets or VDA markets dropped for the second consecutive day as investors await the US PMI Data release, later in the day, which will provide further insight into the US economy.
IC 15 index of cryptocurrencies was trading down by 1.8% at 38,470 points
Thursday’s macro economic indicators marked improvement in the U.S. economy. The March business activity report rebounded unexpectedly led by a surge in demand, especially in the services industry. The US Composite PMI jumped to 53.3 in March, up from 50.1 in February.However analysts expect the PMI scheduled later in the day to come around 49.
On the other hand, some weakening was seen in U.S. economic data that was released earlier in the week. Initial jobless claims rose 5,000 to 245,000 versus expectations for 240,000. The next meeting of the U.S. the Federal Reserve’s Open Market Committee is scheduled two weeks away and market participants anticipate another 25-basis point rate hike.
Another reason for this week’s decline can be attributed to overly positive sentiment in the market. According to a report by crypto analytics firm Santiment, the market had a build-up of long bias in the derivatives markets.
According to data from CoinGlass, over $158 million worth of derivatives contracts were liquidated in the past 24 hours, with over 80% of them being long traders.
The global cryptocurrency market cap was trading around $1.19 trillion, decreasing 2.3% in the last 24 hours.However, the total crypto market volume increased by 2% to stand at $52 billion.
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