CoinGeek reported:
Facing new data showing a slowdown in US inflation, the cryptocurrency market traded lower on Friday.
Bitcoin fell 1.4% to $60,600, while Ethereum dropped 1.3% and Solana fell 3.6%, reversing much of the gains driven by its ETF, despite 21Shares submitting another application today.
SOL prices
Leading the gains were Akash Network (AKT) with a 7% increase, followed by Ethereum Name Service (ENS) with a 5% increase. Fetch.ai (FET), Athena (ENA), and Quant (QNT) all declined by 5% or more.
According to a report released by the Department of Commerce on Friday, the inflation rate for May dropped to the lowest annual inflation rate since May 2021.
The core PCE price index rose 0.1% in May, in line with Dow Jones’ expectations. On an annual basis, the major PCE price index increased by 2.6%. The PCE index is crucial for traders as it is closely monitored by the Federal Reserve and influences its interest rate decisions.
Michael Brown, Senior Research Strategist at Pepperstone, said, “Today’s data may provide more confidence to the Federal Open Market Committee that the US economy is still progressing along the bumpy road of anti-inflation.”
“Nevertheless, the ‘one swallow does not make a summer’ situation still exists, so the May PCE data is unlikely to alone open the door to (rate cuts), although it will indeed nudge the aforementioned door slightly open.”
Cryptocurrency sentiment was also boosted by asset management company VanEck’s application for a spot Solana ETF.
Ethereum ETF
On July 26, Reuters reported that spot Ether exchange-traded funds could enter the market as early as the first week of July.
Michael Van de Poppe, CEO of MN Trading, said the altcoin market experienced a “significant bloodbath.”
He said, “However, with the arrival of the Ethereum ETF, I expect to see a reversal in many Ethereum ecosystem tokens.”
According to the Cryptocurrency Fear and Greed Index, market sentiment has entered the fear zone in recent volatility.
Coinstats Fear and Greed Index
Data from Farside showed that the inflow of funds into all Bitcoin spot ETFs slowed to $13 million on Thursday.
Data from CoinGlass confirmed that 32,173 traders were liquidated in the past 24 hours, with a total amount of $76 million.
