WASHINGTON (dpa-AFX) - Cryptocurrencies recorded gains in the past 24 hours as markets reacted positively to the strong inflows to Bitcoin Spot ETF products in the U.S. Markets also cheered Fed Chair Jerome Powell's Senate testimony where he acknowledged the risk of keeping monetary policy restrictive for too long.
Selling of seized Bitcoin by regulatory authorities in Germany however limited gains. Fed Chair Jerome Powell's testimony before the House of Representatives on Wednesday as well as the June CPI data release scheduled for Thursday triggered cautious optimism in cryptocurrency markets.
Data on Bitcoin Spot ETF products in the U.S. provided by Farside Investors showed net inflows of $216 million on Tuesday as compared with $295 million received on Monday. Month-to-date inflows now are close to $750 million.
Powell's remarks that more good data could open the doors to interest rate cuts was also well received by digital asset markets. The Fed Chief's comments came just as markets are gearing for the release of the CPI data for June on Thursday. The headline annual U.S. consumer price inflation data for June due on Thursday is seen declining to 3.1 percent from 3.3 percent in the previous month. The core component thereof is seen steady at 3.4 percent. The month-on-month headline inflation which was flat in the previous month is however seen edging up to 0.1 percent in June. The core component of the same is seen steady at 0.2 percent.
As a reduction in interest rates would reduce the opportunity cost of holding cryptocurrencies that are typically non-interest bearing, crypto markets are also hoping that inflation soon falls to the Fed's 2 percent target.
The next FOMC is twenty-one days away and markets overwhelmingly expect a pause in the Fed's July review. However, rate cut expectations as revealed in the CME FedWatch tool surge to 77 percent for the Fed's review in September.
Amidst the resumption of inflows to Bitcoin Spot ETF products as well as the renewed rate cut expectations, overall crypto market capitalization has increased to $2.14 trillion from $2.11 trillion a day earlier.
Bitcoin now dominates 53.5 percent of the overall crypto market followed by Ethereum which accounts for 17.5 percent. Stablecoins make up 7.7 percent of the market leaving a market share of 21.3 percent for the residual altcoins.
Bitcoin is currently trading at $57,840.53, having added 1 percent overnight. The leading cryptocurrency traded between $59,417 and $57,014 in the past 24 hours. Nevertheless, it is saddled with weekly losses of more than 4 percent.
Ethereum rallied 1.1 percent overnight but has slipped 6.1 percent over the past 7 days. The leading alternate currency touched a low of $3,026 and a high of $3,129 over the past 24 hours.
4th ranked BNB (BNB) gained more than 2 percent overnight but is grappling with weekly losses of close to 6 percent. BNB is currently changing hands at $526.46.
5th ranked Solana (SOL) added 0.7 percent overnight to trade at $141.89. SOL has however slipped around 1 percent in the past week.
7th ranked XRP (XRP) rallied more than 1 percent overnight as it changes hands at $0.4373. With losses of close to 29 percent, XRP is the highest-ranking crypto to trade with year-to-date losses.
8th ranked Toncoin (TON) added 0.3 percent on the past 24 hours that helped limit weekly losses to a little over 7 percent. with gains of close to 3 percent, TON is the highest-ranking crypto to trade with gains over the 30-day horizon. TON's year-to-date gains of 215 percent is the best among the top-20 cryptocurrencies.
9th ranked Dogecoin (DOGE) gained half a percent on an overnight basis to trade at $0.1087. Despite weekly losses of close to 9 percent, the top-ranked meme coin has gained more than 21 percent in 2024.
10th ranked Cardano (ADA) surged 3.4 percent overnight and is currently changing hands at $0.3839.
Cat-themed meme coin Mog Coin (MOG) ranked 94th overall topped overnight gains with a surge of close to 15 percent.
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