Cryptos Fret Over Inflation
Crypto trading lacked luster amidst a surging Dollar and anxiety surrounding release of inflation data from the U.S. on Wednesday. Consensus estimates peg the recent month’s CPI at 8.8 percent versus 8.6 percent in the month of May.
Energy prices that remained high in the month of June are expected to have a telling effect on the month’s inflation readings, dragging down not just crypto markets but also other risk classes like equities. Global equity markets traded lower while the Wall Street indexes are trading a tad above the flatline, discounting an aggressive interest rate hike by the Fed to tame inflation.
The safe-haven Dollar surged ahead, rising to a fresh 20-year high of 108.56 amidst deepening fears of a painful recession. The greenback’s strength depressed the prices of cryptocurrencies denominated in Dollars.
The crypto market is currently dominated 42.9 percent by Bitcoin, 14.8 percent by Ethereum, 17.5 percent by stablecoins and 24.8 percent by the residual altcoins.
On an overnight basis, all the top 10 cryptocurrencies (excluding stablecoins) are trading with overnight losses; while on a weekly basis, all except Bitcoin (BTC) and Solana (SOL) are trading in the red zone.
Bitcoin declined more than 2.5 percent overnight but is still holding on to a weekly gain of 2.3 percent. BTC is currently trading at $19,852.97, after rising to a high of $20,650.09 and low of $19,609.05 in the past 24 hours.
Ethereum declined more than 5 percent in the past 24 hours and is now trading 2 percent lower on a weekly basis. ETH ranged between $1,153.91 and $1,056.05 in the past 24 hours.
45th ranked Quant (QNT), the native cryptocurrency of the Quant Network, a blockchain platform that facilitates the interoperability of blockchains rallied more than 11 percent overnight.
97th ranked Synthetix (SNX), 35th ranked The Sandbox (SAND) and 70th ranked Loopring (LRC) are the only other cryptocurrencies that have gained more than 1 percent overnight.
47th ranked Aave (AAVE), 76th ranked TerraClassicUSD (USTC) and 87th ranked Compound (COMP) declined more than 10 percent overnight.
19th ranked Uniswap (UNI) is trading with more than 7.5 percent of overnight losses amidst reports that a phishing attack caused losses of around $8 million in Ethereum.
Overall crypto market capitalization dropped to $887 billion, versus $914 billion a day earlier, implying an overnight decline of close to 3 percent. According to the ranking of all assets by market cap published by companiesmarketcap.com, only Gold (market cap: $11.4 trillion), Apple (market cap: $2.4 trillion), Saudi Aramco (market cap: $2.2 trillion), Microsoft (market cap: $2.0 trillion), Alphabet (market cap: $1.5 trillion), Amazon (market cap: $1.1 trillion) and Silver (market cap: $1.1 trillion) rank higher than the overall crypto market cap. Bitcoin is ranked 17th whereas Ethereum is ranked as 91st.
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