Cryptocurrency markets saw a decline on Friday, influenced by new U.S. inflation data showing a slowdown. Bitcoin dropped by 1.4% to trade at $60,600, while Ethereum and Solana also fell by 1.3% and 3.6% respectively. This comes despite renewed interest from 21Shares filing a second ETF proposal today.
Market Movements
Amid the downturn, Akash Network (AKT) surged 7%, and Ethereum Name Service (ENS) rose 5%. Conversely, Fetch.ai (FET), Athena (ENA), and Quant (QNT) saw losses of 5% or more.
According to the Commerce Department’s report, May’s inflation marked its lowest annual rate since May 2021. The core PCE price index met Dow Jones’ expectations with a 0.1% increase in May. The yearly headline PCE index rose by 2.6%, a key factor for Federal Reserve interest rate decisions.
Expert Insights
Michael Brown from Pepperstone noted, “Today’s data adds confidence to the FOMC that the U.S. economy is on a disinflationary path.” However, he cautioned against immediate rate cuts, suggesting the need for sustained economic indicators.
Market sentiment also responded positively to VanEck’s filing for a Solana ETF, while Reuters indicated that spot Ether ETFs could debut in early July. Michael Van de Poppe of MN Trading anticipated a potential market reversal upon the ETF’s launch.
Market Sentiment
The Crypto Fear and Greed Index showed a shift towards fear amidst recent market volatility. Data revealed a slowdown in Bitcoin spot ETF inflows, with 32,173 traders liquidated in the past 24 hours, totaling $76 million.
Despite U.S. inflation easing, crypto markets faced selling pressure, reflecting cautious investor sentiment. Eyes remain on upcoming Ethereum ETF launches, expected to influence market dynamics in the coming weeks.
This article captures the latest developments in the cryptocurrency markets, highlighting the impact of economic data and ETF speculation on investor sentiment and market trends.
