Crypto in the Red Ahead of Friday’s U.S. Inflation Data

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Bitcoin (BTC) remained below $68,000 on European morning, with many altcoins losing up to 5%. BTC is priced just under $67,800 at the time of this writing and is virtually unchanged over 24 hours. The CoinDesk 20 Index (CD20) lost nearly 2%, while meme coins SHIB and DOGE led the declines, falling 5.2% and 3.7%, respectively. Investors are awaiting Friday’s US PCE announcement, which Japanese crypto exchange BitBank warned could mean further losses. “If inflation data comes in warmer than expected, Bitcoin could give up about half of its gains over the last two weeks and fall to around $65,000,” BitBank said in an email to CoinDesk.

A spot Ethereum ETF is unlikely to be listed by the end of June, Bloomberg analyst Eric Balchunas said, after BlackRock filed an amended S-1 form that revealed a “seed capital investor” had purchased initial shares for the proposed product. He said it was a “legal possibility.” . “On May 21, 2024, the Seed Equity Investor, an affiliate of the Sponsor, purchased Seed Origination Baskets consisting of 400,000 Shares at a price per Share of $25.00, subject to conditions,” the S-1 form states. The statement was included. “The net asset value of the Foundation was $10,000,000.” Subject to regulatory approval, assets held in the ETF can be redeemed for cash or even ether. The iShares Ethereum Trust ether ETF will be listed and traded under “ETHA.”

The New York Stock Exchange will consider offering crypto trading if the regulatory situation is clearer, the company’s president said at Consensus 2024 in Austin, Texas. Lynn Martin called cryptocurrency trading an “opportunity for revision” during a panel discussion on Wednesday. “The fact that nearly $58 billion has come into ETFs is a strong signal that the market is looking for regulation in traditional structures,” Martin said. “So I hope [SEC] Considering that Bitcoin ETFs have had tremendous success, he saw the inflows and said, ‘Hey, this makes a lot of sense.'” The NYSE’s U.S.-based rival, the Chicago Mercantile Exchange, is planning to launch spot crypto trading, the Financial Times reported to clients earlier this month.

Painting of the Day

(Trading View)

The chart shows that the US two-year bond yield has reached 5% again.

The opportunity to lock in a 5 percent yield and hedge against a potential U.S. economic slowdown could prompt investors to shift money from risky assets into bonds.

Source: TradingView

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-Omkar Godbole

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