- A significant U.S. inflation number that is expected on Friday, which is likely to influence the outlook for interest rates, has caused a stir in the sentiment toward the wider crypto markets.
- In the last 24 hours, Bitcoin increased by 0.1%, reaching $61,367.0 at 08:58 ET (12:58 GMT).
- Fears of Mt Gox going bankrupt continue, and Bitcoin is expected to drop in June.
- The primary source of worry for Bitcoin continues to be the distribution of tokens that were pilfered from the Mt Gox exchange in 2014. Exchange liquidators said that payouts of tokens, including Bitcoin Cash and Bitcoin Stolen, would start in early July and be made available to customers.
- Traders surmised that recipients were likely to sell their tokens, indicating a large selling event for Bitcoin that may drive prices down significantly, given that the tokens will be worth a significant amount more than when they were stolen.
- This idea had a significant impact on Bitcoin prices throughout the week, setting up the biggest cryptocurrency in the world for a roughly 9% decline in June.
Today’s cryptocurrency price: Additionally flat, altcoins rise
- Although prices for broader cryptocurrencies increased, they were still down through June.
- With rumors that the Securities and Exchange Commission may approve a spot Ether exchange-traded fund (ETF) as soon as next week, the second-most popular cryptocurrency in the world, Ether, saw a 0.1% increase.
However, in June, the token’s value was also down by around 9%.
- Up 1.1% to 3.5% were increases in SOL, XRP, and ADA, along with nursing losses through June. There were also little altcoin trade volumes.
DOGE and SHIB saw increases of 3.3% and 1%, respectively, among meme tokens.
- Before the release of PCE price index data later on Friday, traders shifted their holdings into the greenback, putting pressure on cryptocurrency prices as the dollar strengthened to a two-month high.
- The number, which is the favored inflation indicator of the Federal Reserve, is probably going to have an impact on interest rate forecasts.
- Given that the cryptocurrency market often flourishes in a low-rate, highly speculative environment, the threat of higher and longer-term interest rates was a major drag on prices through June.
This year, ether prices might reach $6.5K because of inflows from ETFs.
- According to a Steno Research analysis released on Thursday, the cryptocurrency market is unduly negative about the impending debut of the spot ether ETF in the United States, with net inflows perhaps topping $20 billion in the first year.
- According to the paper, substantial investment may be stimulated by ETH’s attractiveness to Wall Street.
- In a memo seen by CoinDesk, Steno analysts said, “Even with the outflow from the Grayscale Ethereum Trust (ETHE), we continue to forecast a net inflow between $15 billion and $20 billion in the first 12 months.”
- They went on to say that this inflow should raise the price of ether about bitcoin as well as in US dollars.
- Steno Research believes that these anticipated inflows to spot ETFs, together with other favorable factors, might propel ether to at least $6,500 later this year.
- Spot ether ETFs are scheduled to list for trading in the United States after the SEC’s approval of issuers’ files last month. Depending on whether S-1 filings are approved, trading may begin as early as next week.
- According to Steno Research, the ether/bitcoin ratio may increase to 0.065 later this year if the anticipated spot ether ETF inflows occur.
- The paper said that because of ether’s lower market capitalization and much worse liquidity, “a smaller inflow into ether ETFs compared to bitcoin ETFs will have a greater impact on ether.” It also added that inflows into ETH spot ETFs are more likely to surpass forecasts than to fall short.
Source:
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