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The global cryptocurrency market cap gained around 4.1 percent in the past 24 hours to about $2.83 trillion on Tuesday during the early London session. For the first time in Bitcoin’s history, the flagship coin had a daily close above $72,000 on Monday, thus signaling the bulls are in control. Furthermore, the altcoin market – led by Ethereum (ETH), Binance coin (BNB), Solana (SOL), and Ripple-backed XRP, among others – has gradually been recovering from the 2022 bear market crash.
U.S Market Check
The heightened mass adoption of the cryptocurrency market by institutional investors, led by Wall Street financial firms, has significantly increased its correlation with traditional stocks. Consequently, the cryptocurrency market has registered heightened volatility during high-impact news, especially from the United States regarding the overall inflation and interest rates.
After slowing down interest rate hikes recently, the US Federal Reserve commissioners have signaled to inevitable rate cuts this year. Furthermore, the US unemployment rate has remained low despite the high interest rates, thus signaling a stronger market.
However, the recent US Consumer Price Index (CPI), which monitors the change in price of goods and services, signaled untamed inflation. According to JPMorgan Chase CEO Jamie Dimon, the Fed should not rush in interest rate cuts as the prospects of a recession in the United States are not off the table.
Later today, the US Bureau of Labor Statistics will be releasing crucial data on CPI, whereby the monthly change is expected to rise by 0.1 basis while the year one is anticipated to remain stagnant at 3.1 percent.
Crypto Whale Demand Escalates
The cryptocurrency market is expected to experience heightened volatility in the coming weeks amid high-impact news. For instance, Ethereum’s highly anticipated Dencun upgrade is expected to happen tomorrow. The fourth Bitcoin halving is less than 40 days from happening, historically triggering the macro crypto bull run.
Nevertheless, long-term crypto believers have continued accumulating more coins – led by MicroStrategy and BlackRock – in anticipation of further gains.