Cryptos Firm In Anticipation Of Debt Limit Deal

Cryptocurrencies remained firm, rising from the levels a day earlier even as markets speculated on the likely outcome of the debt ceiling negotiations and the effect of the same on global markets and global liquidity. Indications that the negotiations are gaining momentum fueled hopes of an early solution to a crisis that has threatened to rattle the world financial landscape.

The mood persisted despite the Fed’s preferred PCE inflation readings implying persistent inflation. Core PCE inflation, which excludes food and energy increased 0.4 percent month-on-month in April versus expectations for it to be steady at 0.3 percent. The spurt in prices has reinforced bets that the Fed would have to maintain rates elevated for a long period.

Meanwhile expectations of the Fed raising rates by another quarter point in the next review due on June 14, 2023 continued to strengthen. The CME FedWatch tool currently shows 52.8 percent probability for the hike, versus 51.7 percent a day earlier and 17.4 percent a week earlier.

The Dollar remains weak despite the disappointing PCE readings. The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies has dropped 0.17 percent overnight to 104.07.

Overall crypto market capitalization is steady at $1.11 trillion.

Bitcoin is trading at $26,505.76, having increased 0.49 percent in the past 24 hours. The 24-hour trading range was between $26,591.52 and $26,192.13. Bitcoin’s crypto market dominance is currently a little over 46 percent.

Ethereum is trading at $1,821.34, adding 1.2 percent over the past 24 hours. The leading alternate coin ranged between $1,819.79 and $1,788.29 over the past 24 hours. Ether commands 19.6 percent of the overall crypto market.

9th ranked Polygon (MATIC) topped the top 10 category with an overnight rally of 4.4 percent. MATIC has gained more than 6 percent in the past week and 22 percent on a year-to-date basis.

10th ranked Solana (SOL) was the biggest laggard, losing 0.29 percent overnight. Though SOL has shed 5.3 percent over the past week, year-to-date gains exceed 93 percent.

In the wider crypto universe, 36th ranked Arbitrum (ARB) is the top gainer among the top 100 cryptocurrencies with an overnight rally of more than 5.5 percent. 73rd ranked Casper (CSPR) also added more than 5 percent in the past 24 hours.

27th ranked Toncoin (TON), 32nd ranked Lido DAO (LDO), 63rd ranked Neo (NEO) and 11th ranked TRON (TRX), all shed more than 2 percent over the past 24 hours.

Meanwhile Bloomberg has reported that Digital Currency Group has closed down the TradeBlock Institutional Trading Platform, citing harsh crypto market conditions. Cryptocurrency custody company Unbanked too announced closure citing unfavorable regulatory conditions.

For More Cryptocurrency News, visit rttnews.com

Source: Read Full Article