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.”
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.