CPI Data Fails to Impact Crypto Rally Amid Risk-On Sentiment
U.S. inflation data indicates a rise in core CPI above 3%, impacting market expectations for Federal Reserve interest rates. Key highlights include:
- Bitcoin (BTC) increased by over 1% and Ethereum (ETH) surged by over 8% amid the inflation news.
- The Fed's strategy may shift towards rate cuts despite higher inflation, benefiting assets like BTC and gold.
- BTC is trading near $120,000; several alternative cryptocurrencies gained more than 10% as retail investors return to DeFi platforms.
- Circle launched a stablecoin-focused layer 1 blockchain named Arc for financial transactions.
- Nasdaq-listed ALT5 Sigma raised $1.5 billion through direct offerings.
- The MOVE index fell to its lowest since January 2022, indicating reduced volatility in Treasury notes and encouraging risk-taking in markets.
Upcoming Events
- Aug. 13: Bullish shares will start trading on NYSE under ticker BLSH, priced at $37 each.
- Aug. 15: Coinbase to launch nano SOL and nano XRP perpetual-style futures.
- Aug. 20: Qubic will undergo its first halving event, significantly altering token emissions.
Market Movements
- BTC is down 0.1% at $120,049.72 (24hrs: +1.46%)
- ETH is up 1.59% at $4,691.83 (24hrs: +9.76%)
- Gold futures up 0.48% at $3,415.20
- DXY down 0.45% at 97.66
Crypto Equities
- Coinbase Global (COIN): closed at $322.62 (+0.94%)
- Galaxy Digital (GLXY): closed at $27.90 (-2.04%)
Technical Analysis
- Ether's RSI crossed above 70, indicating strong bullish momentum.
Derivatives Positioning
- Open interest in Ether futures increased, signaling bullish sentiment.
- Traders are positioning for further price increases in both BTC and ETH.