Crypto markets took a hit following the latest Consumer Price Index (CPI) report, with both Bitcoin and Ethereum seeing notable declines.
đ» Market Movements:
âą Bitcoin: Dropped by 4%, now around $58,500
âą Ethereum: Fell by 3.8%, currently at $2,630
âą Total Crypto Market Cap: Contracted by 4.4% to $2.1 trillion
đ° Key Insights:
âą CPI Report: Showed a 0.2% increase in prices for July, with annual inflation at 2.9%. Core CPI also rose by 0.2% monthly, hitting a 3.2% annual rateâboth in line with expectations.
âą Market Sentiment: Analysts suggest the CPI report was "boring," which was needed to keep the Fed on track for a potential rate cut in September.
âą Price Speculation: Despite the CPI's "boring" results, market analysts remain divided on the long-term impact on crypto, with some predicting no major Bitcoin breakout until Q4.
đš Notable Events:
âą U.S. Government BTC Transfer: Nearly $600 million in seized BTC was moved to Coinbase, sparking speculation and contributing to the price dip.
âą ETF Outflows:
- Bitcoin Spot ETFs: Recorded a net outflow of $81.4 million on Aug 14.
- Ethereum Spot ETFs: Fared better with $10.8 million in net inflows, but Grayscaleâs Ethereum Trust continued its outflows, losing $16.9 million.
âą On-Chain Analysis: A decoupling was observed between Bitcoinâs price and holdings by the ETC Group Physical Bitcoin (BTCE), signaling potential shifts in market dynamics.
đ Technical Indicators:
âą Support Levels: $58,800, $57,000, $59,000
âą Resistance Level: Close to $60,250
âą RSI Indicator: Holding above 50, suggesting potential bullish momentum.
âą Future Outlook: Anticipation of a 50 bps rate cut in September could trigger a rebound in crypto prices.
đĄ Stay Informed: With market volatility expected to continue, keep an eye on the Fedâs moves and key technical levels!
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