Markets pull back ahead of key CPI and interest rate announcements
THE price of Bitcoin and many other large-cap cryptocurrencies are down by 2% or more this morning, with few winners in the market.
Bitcoin has dropped 2.8%, while Ethereum has pulled back 3.9%. Other notable pullbacks on Luno include Maker (-4%) and CurveDao (-8%).
The bearish sentiment is reflected in the Fear and Greed Index, which has declined by 6 points in the last seven days.
Bitcoin trading volumes have doubled overnight as the choppy markets continue ahead of key economic indicators set to be released tomorrow, including May's Consumer Price Index (CPI) and the Federal Reserve's interest rate announcement. Economists polled by Reuters expect US consumer price inflation to ease to 0.1% from 0.3% last month, according to Reuters.
It’s widely expected that the Fed will keep rates unchanged, but investors will also be looking at the dot plot chart that summarises the Federal Open Market Committee (FOMC) members' projections for future interest rates. Analysts note that only one rate cut scheduled for later in the year could be seen as hawkish by investors.
In the Markets
Total crypto market cap
$2.49 trillion (-2.65%)
What Bitcoin did yesterday
Daily high $70,152 | Daily low $69,259
Bitcoin market capitalisation
$1.32 trillion (-2.99%)
Bitcoin volume
$30 billion (+94%)
CoinDesk Large Cap Select Index
-2.85%
The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market.
SP500
+0.26%
Fear and Greed Index
60 (Greed)
The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.
Bitcoin’s market dominance
55.5
The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.
Bitcoin Relative Strength Index (RSI)
61.9
Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.
Post Script…
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
