Volatility on the cards with all eyes on inflation and US CPI numbers

A MONTH ago, the Fear and Greed Index was almost maxed out at 90, showing Extreme Greed among investors. It’s a different story this morning, having dropped to a Neutral 56, indicating the current market uncertainty.

Bitcoin has fallen below $68,000 after holding steady above $70,000 just last week. Ethereum is priced around $3,500, with similar downward trends across most cryptocurrencies.

With the Fed’s interest rate decision and May’s inflation numbers coming out today, analysts expect volatility. While most economists expect the Fed to keep rates unchanged, investors will be watching Chairman Powell’s press conference for clues about future policy direction.

In the Markets

‍

Total crypto market cap

$2.45 trillion (-0.58%)

‍

What Bitcoin did yesterday

Daily high $67,596 |  Daily low $66,911

‍

Bitcoin market capitalisation

$1.32 trillion (-0.47%)

‍

Bitcoin volume

$31.2 billion (+8.8%)

‍

CoinDesk Large Cap Select Index 

-0.78%

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

+0.27%

‍

Fear and Greed Index

56 (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)

46.94

‍

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.