Major cryptocurrencies witnessed a decline on Tuesday evening. Significantly, this downturn reflects the market’s increasing acceptance of a prolonged era of higher interest rates. Consequently, investors keenly observe key inflation data released on Thursday, eyeing potential signs of a U.S. recession and prospective interest rate hikes.
Crypto Performance Highlights:
- Bitcoin (BTC/USD) declined by 0.40% to settle at $26,224.
- However, Ethereum (ETH/USD) saw a minor increment of 0.13%, placing it at $1,590.
- Dogecoin (DOGE/USD) decreased by 0.60%, now priced at $0.060.
Moreover, the Securities and Exchange Commission (SEC) made a significant announcement. They’ve decided to delay their ruling on the proposed ARK 21Shares Bitcoin ETF until January 10 of next year. In a recent filing, the Commission emphasized the need for a longer “to consider the proposed rule change.”
Top 24-Hour Gainers:
- Maker saw a notable rise of 6.22%, standing at $1,412.10.
- Frax Share increased by 2.15%, reaching $5.83.
- GMX enjoyed a 1.84% uptick, priced at $35.58.
Additionally, the global crypto market capitalization stands notably at $1.05 trillion, a 0.89% rise from the previous day. However, traditional markets felt the pinch. The S&P 500 dipped by 1.47%, settling below the 4,300 mark for the first time since June 9. Similarly, the Nasdaq Composite dropped by 1.57%. Meanwhile, the U.S. Dollar index surged to a 10-month high, a remarkable move amid soaring 10-year treasuries. This indicates strong economic performance, even with higher interest rates.
JPMorgan Chase CEO Jamie Dimon offered a word of caution. Citing the possibility of the Federal Reserve pushing the rates to 7%, he warned of increased financial stress. Evoking Warren Buffett’s words, Dimon remarked, “That will be the tide going out.”
Analyst Insights:
Crypto experts have weighed in on the situation. Michael Van de Poppe predicts that Bitcoin might struggle, possibly testing the $25,700-26,000 range. On the Ethereum side, Benjamin Cowen highlighted the growing supply over the past month, associating it with a decreasing demand. However, analyst Kaleo maintains an optimistic outlook for Bitcoin, foreseeing a potential surge towards the $38,000 mark.
In conclusion, cryptocurrency remains a sector to watch closely as financial landscapes evolve. The interplay of market factors continues to shape its future.
