Major cryptocurrencies traded lower on Wednesday evening despite the release of positive inflation data in the Consumer Price Index (CPI) report for June.CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)Bitcoin BTC/USD -0.53%$30,380Ethereum ETH/USD -0.52%$1872Dogecoin DOGE/USD -0.62%$0.064
What Happened: The U.S. consumer prices recorded a 0.2% increase in June, which was lower than expectations for a 0.3% rise.Core inflation, which excludes volatile food and energy prices came in at 4.8% as against consensus estimates of 5%.
Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)Conflux+7.05%$0.199Compound+6.30%$71.97BitDAO+4.83%$0.4736
At the time of writing, the global crypto market capitalization stood at $1.18 trillion, a decrease of 0.69% over the last day.
U.S. stocks experienced a boost on Wednesday following optimistic data which suggests that the Federal Reserve has the ability to control inflation without negatively impacting the US economy.
As a result, the S&P 500 saw a considerable increase of 0.74%, while the Nasdaq Composite saw a notable surge of 1.15%.
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Analyst Notes: "Correction and still in the chop. Patience is required in the crypto markets but youd rather bet on the case that well be going up (whether or not well have a correction first) than expecting to go to $12,000," wrote crypto trader Michael Van de Poppe.
Pseudonymous analyst Bluntz raised concerns about BTCs recent performance. Bluntz observes a bearish lower-high pattern on the four-hour chart, indicating a potential downward correction for Bitcoin.
Bluntz believes that the current price action signals a loss of momentum for the crypto king, hinting at an ABC correction. This correction could drive Bitcoins value below the critical $28,000 mark.
"Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now."
On-chain analytics firm, Santiment, tweeted that both sharks and whales are closely monitoring the Bitcoin price range of $30,000 to $31,000, just like the rest of the traders. Interestingly, they seem to be accumulating stablecoins such as USDP and DAI at a rapid pace. This accumulation suggests a higher probability of significant cryptocurrency purchases in the near future.
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