Cryptos Muted Despite Weak Dollar, Stock Market Rally

Cryptocurrencies remained subdued early on Thursday even as the Dollar retreated, and stock markets rallied. Market worries surrounding the debt deal waned amidst the debt deal Bill progressing to the Senate. Despite the rally in global stock markets that cheered the progress of the debt deal and the decline in inflation in the eurozone, cryptocurrencies are trading lackluster. Comments from Fed officials that renewed fresh hopes of a pause by the Fed in its ensuing review also did not suffice to trigger a bullish momentum.

Expectations about the ensuing review by Fed swung overwhelmingly in favor of a pause. The CME FedWatch tool now shows a 77.3 percent probability for a pause, versus 73.6 percent a day earlier and 48.3 percent a week earlier. This follows comments from Fed officials that hinted at a pause by the Fed in the review due on June 14.

Crypto’s muted performance is also despite a retreating Dollar, that dragged the Dollar Index more than 0.45 percent lower on an overnight basis to 103.85.

Sentiment remained dampened amidst reported whale movements following a court ruling that allowed the IRS access to user data on Coinbase. The case related to a suit questioning the constitutionality of the Internal Revenue Service’s utilization of its “John Doe” summons procedure to obtain a taxpayer’s account information from the virtual currency exchange.

The court ruled that the IRS’s actions satisfied the Fourth Amendment’s reasonableness requirement and provided the plaintiff constitutionally adequate process under the Due Process Clause. The court also noted that the statute does not expressly or impliedly provide taxpayers with a private right to sue the IRS for purported statutory violations.

Non reporting of cryptocurrency transactions on tax returns has been a subject of regulatory concern for the IRS.

Overall crypto market capitalization is currently steady at $1.13 trillion.

Bitcoin is trading at $26,848.16, having decreased 0.35 percent overnight. Though the top-ranked cryptocurrency is trading with weekly gains of 2 percent, it is trading in the red zone with a 4.8 percent loss over a 30-day horizon.

Ethereum is trading at $1,857.29, having gained 0.05 percent overnight and 3.4 percent over the past week.

Among the top 10 non-stablecoin cryptocurrencies, 5 cryptocurrencies viz Bitcoin (BTC), BNB (BNB), XRP (XRP), Cardano (ADA) and TRON (TRX) are trading with overnight losses. The remaining 5 viz Ethereum (ETH), Dogecoin (DOGE), Polygon (MATIC), Solana (SOL) and Litecoin (LTC) recorded overnight gains. BNB (BNB) and TRON (TRX) are trading with losses on a weekly basis. Bitcoin (BTC), BNB (BNB), Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC), and Solana (SOL) are trading with losses over a 30-day horizon.

11th ranked Litecoin (LTC) gained 5.94 percent overnight and tops the gainers list among the top 100 cryptocurrencies. 81st ranked XDC Network (XDC) added 4.7 percent overnight, 19.7 percent in the past week and 41.9 percent on a year-to-date basis. The crypto coin of the layer 1 blockchain is however trading 3.5 percent lower over the past 30 days.

89th ranked gate Token (GT) slumped 7.9 percent overnight and is the greatest laggard among the top 100 cryptocurrencies. The centralized Exchange token has shed 7.3 percent in the past week and 15.7 percent over the past 30 days but has gained close to 47 percent in 2023.

57th ranked Conflux (CFX) continues to top year-to-date gains with a more than 1200 percent surge in 2023.

98th ranked PancakeSwap (CAKE) also continues to be the biggest laggard in 2023 with a decline of close to 48 percent.

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