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This article originally appeared in First Mover, CoinDesk’s daily newsletter, providing insightful analysis of the latest trends in the cryptocurrency markets. Subscribe now to receive it directly in your inbox every day.
Latest Prices and Market Updates
Bitcoin (BTC) maintained its position around $58,000 during the European trading session, showing resilience ahead of the U.S. inflation report scheduled for 8:30 ET (12:30 UTC). Despite a slight drop to $57,000 earlier, BTC is currently hovering around $58,400, marking a marginal decrease of 0.34% over the past 24 hours. The CoinDesk 20 Index, reflecting the overall digital asset market, has seen a modest uptick of about 0.2%, indicating a cautious stance among traders awaiting the CPI report. This report is crucial as it will provide insights into the potential for interest rate adjustments.
The upcoming U.S. CPI data is anticipated to reveal a 0.1% increase in the cost of living for June, following a flat reading in May. This would translate to a 3.1% year-on-year surge, aligning closer with the Federal Reserve’s targeted 2% inflation rate. Such data might pave the way for a series of anticipated interest rate cuts later this year, which could boost risk assets like bitcoin, aiding its recovery from recent lows. However, the current market data suggests a consolidation phase, with BTC struggling to breach the $59,000 mark convincingly.
The volume of staked ether (ETH) is nearing a record peak, reflecting growing interest as the possibility of a spot ether ETF in the U.S. moves closer to realization. Julio Moreno, CryptoQuant’s head of research, highlighted that the total staked ETH has surged to 33.3 million ETH, constituting approximately 27.7% of the total supply. This rise in staked ETH signals a return to inflationary dynamics for ether, potentially impacting its store of value characteristics over time. Strategies such as staking and burning transaction fees could mitigate this inflationary effect.
Chart of the Day
– Omkar Godbole