Cryptocurrency Market Update: August 16th
Cryptocurrency Market Update: Bitcoin and Altcoins Exhibit Diverse Trends
The cryptocurrency market displayed a range of trends today, with Bitcoin, Ethereum, BNB, Solana, and XRP showing slight increases in trading value, while Toncoin, Dogecoin, Avalanche, Shiba Inu, and Polkadot saw marginal declines.
At 4:17 pm IST, Bitcoin (BTC) was trading 0.15% higher at $58,428, after reaching a low of $56,161 earlier in the day. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, gained 0.04%, trading at $2,619.
The market fluctuations followed the release of data indicating that U.S. consumer prices rebounded as anticipated in July, thereby moderating expectations for a significant rate cut by the Federal Reserve next month.
According to the Labor Department’s Bureau of Labor Statistics, the U.S. consumer price index increased by 0.2% last month, following a 0.1% decline in June. Over the 12 months through July, the CPI rose by 2.9%, compared to a 3% increase in June.
Furthermore, the CME FedWatch tool reported that the markets are currently pricing in only a 25% likelihood of a 50-basis-point cut by the Federal Reserve next month, down from 55% a week ago. This has impacted the valuation of cryptocurrencies, with Bitcoin experiencing a pullback to the $58,000 level after the release of U.S. CPI data.
In addition, geopolitical tensions between Iran and Israel, along with substantial liquidations in the crypto derivatives market, have added pressure to the market.
The CoinDCX Research Team has noted that, “there’s no specific reason for this drop. Both Bitcoin and Ethereum are moving sideways on lower time frames, with the overall market appearing choppy.” They added, “U.S. BTC ETF inflows have slowed down, and altcoins are suffering due to Bitcoin’s decline and the market’s choppy behavior.”
Over the last 24 hours, the market cap of Bitcoin rose to $1.153 trillion, with Bitcoin’s dominance currently at 55.83%. BTC volume in the last 24 hours saw a 6.36% increase to $34.68 billion.
Overall, the cryptocurrency market continues to demonstrate mixed trends, with various factors such as economic data, geopolitical tensions, and market behavior influencing the prices of Bitcoin and altcoins.
It is advisable for investors to carefully consider these factors and seek guidance from financial experts before making any investment decisions.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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