Cryptos Nervous Amidst Inflation Fears

Cryptocurrency markets declined amidst a slightly bearish tone that engulfed market sentiment ahead of the release of the July readings on CPI from the U.S.

While headline inflation is expected to decline to 8.7 percent from 9.1 percent earlier, the Core CPI, the Fed’s preferred inflation gauge is seen rising to 6.1 percent from 5.9 percent in the previous month. Any negative surprise on the readings could further dampen the crypto market sentiment.

Crypto market capitalization declined to $1.09 trillion, versus $1.10 trillion a day earlier, registering a drop of close to one percent.

Asian markets closed deep in the red. European stock markets are trading near the flatline whereas the Wall Street Futures are in positive territory.

Gold Futures for December settlement are trading 0.20 percent lower at $1,808.75 per troy ounce. The U.S. Dollar Index is hovering near 105.95, down almost 0.40 percent on an overnight basis.

Bitcoin is trading at $23,184, down 0.36 percent on an overnight basis. Bitcoin’s market dominance stood at 40.5 percent, versus 40.6 percent a day earlier.

Ethereum’s current price of $1,712 is almost 0.5 percent higher than the prices 24 hours ago. Ethereum’s market dominance however remains steady at 19 percent.

3rd ranked Tether (USDT), traded at $1 in the past 24 hours. 4th ranked USDCoin (USDC), traded between $1.00 and $0.9995 in the past 24 hours.

5th ranked BNB (BNB) is trading near the flatline. Binance USD (BUSD), ranked 6th overall traded between $1.00 and $0.9995.

7th ranked XRP (XRP), 8th ranked Cardano (ADA), and 10th ranked Polkadot (DOT) are trading with losses of around 1 percent. 9th ranked Solana (SOL) has declined 2 percent.

Dogecoin declined close to 2 percent and slipped one notch to the 11th position in overall rankings.

86th ranked Nexo (NEXO) is the lead gainer with an overnight rally of 12 percent.

64th ranked Lido DAO (LDO) and 100th ranked Kadena (KDA) have both gained more than 5 percent.

80th ranked Decred (DCR) and 89th ranked Celsius (CEL) have gained more than 3 percent.

Meanwhile, the CoinShares’ Digital Asset Fund Flows Weekly report on institutional investments showed inflow of $3.1 million for the week ended August 5, versus the inflow of $81 million recorded in the previous week. While Ethereum recorded $16.3 million of inflows, Bitcoin recorded outflows of $8.5 million. Short Bitcoin product also recorded outflow of $7.5 million.

Meanwhile, Reuters has reported that crypto exchange Nuri has filed for insolvency in Germany. The company attributed the action to the sell-off in the cryptocurrency market, the bankruptcy of the Celsius network, and the uncertainty in financial markets.

Shares of cryptocurrency exchange Coinbase are trading 5 percent lower in pre-market trade after reporting disappointing second quarter results.

The Fed’s interest rate hikes and the massive turbulence caused by the events in the Terra ecosystem had caused unprecedented turbulence in crypto market in the quarter ended June, triggering extreme risk aversion and dwindling volumes.

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