Cooling Inflation Fails To Lift Crypto Market Sentiment

Easing consumer price inflation in the U.S. failed to lift sentiment in the crypto market. Only less than 20 percent of the top 100 cryptocurrencies have gained more than 1 percent in the past 24 hours.

Data released on Wednesday had showed annual consumer price inflation falling to 3 percent in the month of June, versus 4 percent in the previous month and expectations of 3.1 percent, deepening expectations of a pause or even pivot by the Fed. Core inflation that excludes the volatile food and fuel components too dropped more-than-expected to 4.8 percent from 5.3 percent earlier. Month-on-month inflation, which was seen rising from 0.1 percent to 0.3 percent, increased only to 0.2 percent. Core inflation, on a month-on-month basis, cooled to 0.2 percent from 0.4 percent earlier and expectations of 0.3 percent.

Despite the positive inflation surprise, markets continue to expect the Fed to raise rates in the review scheduled for July 26. The CME FedWatch tool currently shows only a 7.6 percent probability for a pause and 92.4 percent probability for a rate hike of 25 basis points. However, the Dollar Index, a measure of the dollar’s relative strength has dropped to 99.99, a decline of 0.53 percent from the previous close of 100.52.

Several negative developments including reports of wallet movements implying a potential sale of Silk Road BTC holdings of the U.S. government, as well as downgrade of the shares of Coinbase to “Underweight” by a brokerage have dampened the sentiment for cryptocurrencies. Also driving down crypto prices are reports of SEC filing fraud charges against Celsius Network and its CEO Alexander Mashinsky.

Overall crypto market capitalization has fallen to $1.19 trillion, from $1.20 trillion a day earlier.

Bitcoin (BTC), the leading cryptocurrency has shed 0.9 percent overnight to trade at $30,546.99. The 24-hour trading range was between $30,822.61 and $30,228.84. Year-to-date gains are a little less than 85 percent.

Ethereum traded between $1,901.15 and $1,864.50 in the past 24 hours. It is currently changing hands at $1,881.85, having erased 0.7 percent overnight. Ether is however grappling with losses of 0.4 percent over the past week. Year-to-date gains are a little less than 57 percent.

Bitcoin dominates 49.91 percent of the overall crypto market followed by Ethereum which accounts for 19 percent.

4th ranked BNB (BNB) declined 0.40 percent in the past 24 hours but has gained more than 3.5 percent in the past week. The cryptocurrency is currently changing hands at $246.27.

6th ranked XRP (XRP) shed 0.03 percent overnight but has gained half a percent in the past week. It is yet to recoup 10.3 percent losses made over the past 30 days.

7th ranked Cardano (ADA) has lost more than 1 percent overnight. It has however gained close to 2 percent over the past week.

8th ranked Dogecoin (DOGE) edged up 0.10 percent overnight and 6 percent over the past 30 days. It is still saddled with weekly losses of more than 1 percent.

9th ranked Solana (SOL) has dropped 0.85 percent overnight. Weekly gains exceed 14 percent.

10th ranked Litecoin (LTC) added 3 percent overnight and 1.01 percent over the past week amidst heightened interest ahead of the upcoming halving event in early August.

97th ranked SingularityNET (AGIX) topped the price charts with an overnight rally of more than 11 percent. 73rd ranked Compound (COMP) also added more than 6 percent overnight.

70th ranked Kava (KAVA) is the biggest laggard, shedding more than 8 percent in the past 24 hours. 47th ranked Algorand (ALGO) also declined 4 percent overnight.

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