Crypto Market Experiences Selloff as Bitcoin, XRP, and Solana Await Catalyst
The cryptocurrency market experienced a selloff as July began, ending the accumulation phase that started on June 22. Key points include:
- Global market capitalization declined by 0.15% to $3.29 trillion.
- Bitcoin consolidated around $107,000.
- XRP fell 1.4% to $2.19 and Solana dropped 1.1%, trading near $150.
- Total trading volume decreased by 3%, dropping below $100 billion, indicating investors are adopting a wait-and-see approach.
- The fear and greed index fell from 50 to 46, reflecting increased bearish sentiment while remaining in neutral territory.
- The US M2 money supply reached an all-time high of $21.94 trillion, suggesting potential inflation risks.
- The US Consumer Price Index has decreased from 5.3% to 2.8% but remains challenging for the Federal Reserve.
- No interest rate cuts are anticipated at the upcoming FOMC meeting due to new tariffs.
- Demand for Bitcoin has declined, with spot BTC ETFs experiencing a net outflow of $342.2 million on July 1.