Bitcoin and Ethereum: Crypto markets swing on softer inflation read

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Bitcoin and Ethereum Crypto:- Bitcoin’s value is known to fluctuate rapidly due to various factors such as news events, market sentiment, and regulatory changes. The recent lower-than-expected inflation rate in the US may have contributed to the temporary rise in Bitcoin’s price. However, there are many factors at play in the cryptocurrency market, so it’s hard to predict its movements.

Cryptocurrencies & Bitcoin

Cryptocurrencies like Bitcoin are not regulated like traditional currencies. Their value can be affected by supply and demand, technological advancements, and investor sentiment. If you’re thinking of investing in cryptocurrencies, it’s important to consider the risks and potential rewards carefully. Seeking professional advice can also be helpful.

Bitcoin’s price dropped suddenly, causing losses of almost US$50 million and the liquidation of many long positions at the end of the trading session. As a result, Bitcoin’s price has decreased by around 5.5% compared to the previous week.

The transaction fees for Bitcoin have dropped to around US$14 today, down from almost US$30 per transaction on Monday. This decrease is because of the reduced network congestion.

Market makers such as Jane Street and Jump Trading are withdrawing from the cryptocurrency market due to the regulatory uncertainty in the US, which has caused a reduction in liquidity in Bitcoin and the wider cryptocurrency market. Bloomberg has reported this decline.

  • Reduced liquidity in crypto markets due to regulatory uncertainty could result in increased volatility.
  • Bitcoin is currently trading around US$27,550 after a 0.24% dip during the Asia trading session.
  • Ethereum experienced a similar trend after the inflation read, reaching an intraday high of US$1,890 before dropping to US$1,840 by the end of Wednesday’s trading.
  • As of writing, the ETH/USDT pair was trading at around US$1,830, down around 0.35% in morning trades.
  • Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), and Solana (SOL) are performing poorly compared to bitcoin, with weekly losses in the upper single digits.
  • Polygon (MATIC) has lost over 13%, while Tron (TRX) is the only top-20 cryptocurrency currently showing gains.
  • The FLOKI meme coin has entered the top-100 list following an upgrade to its protocol, pushing its market capitalization close to US$350 million.

The global cryptocurrency market capitalization remained stable at $1.14 trillion over the last 24 hours. However, the total value locked in the decentralized finance (DeFi) sector decreased by 0.7% to $49.1 billion.

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