Cryptocurrency markets are in a period of cautious waiting as investors prepare for the release of the Consumer Price Index (CPI) inflation report, the Reserve’s preferred inflation gauge federal. While this figure is expected to show a slowdown in inflation, its impact on the price of bitcoin and other digital assets remains to be seen. In this article, we will explore the latest market developments and the potential implications of the CPI report for the crypto ecosystem.
Bitcoin Price Consolidation
Bitcoin (BTC) price is falling below the $61,000 threshold, sans orientation claire ahead of the release of the CPI report. Economists expect that l’IPC shows that the annualized inflation rate has slowed to reach 2.6% in May, against 2.8% previously.
Although this is the lowest reading in over two years, this figure remains above the Fed’s 2% target.
“A lower-than-expected reading would suggest a continued decline in inflation and could potentially boost cryptocurrencies in the coming months,” said Valentin Fournier, a digital assets analyst at brn, a consulting firm.
The rise of Solana against Ethereum
Le jeton SOL de Solana a outperformed the ETH token of Ethereum this week, after the New York asset management company VanEck et 21Shares have filed an application for registration for a Solana ETF. VanEck sees the native SOL token as functioning similarly to other digital commodities like bitcoin and ether.
“We believe the native token, SOL, functions similarly to other digital commodities like bitcoin and ETH,” Matthew Sigel, head of digital assets research at VanEck, wrote on argue that SOL is a commodity, not a security.
The absence of CME futures contracts for SOL, unlike Ethereum, appears to constitute an obstacle to the approval of a SOL ETF. However, the path of least resistance for the SOL/ETH ratio appears to be trending upward, the ratio having gained 12% this week.
Confidence in Trump rises after presidential debate
Blockchain punters were skeptical about the president’s performance Joe Bidenin the first debate of the 2024 presidential election, pushing former President Donald Trump’s chances to win in November by up to 67%.
“A Trump victory in November could signal a shift toward more favorable regulatory conditions for the cryptocurrency industry,” Bitfinex analysts said in an email.
Conclusion
As investors wait with bated breath the release of the CPI reportthe crypto market appears to be navigating through troubled waters. However, positive developments around Solana and the prospects of a potentially industry-friendly Trump victory, give rise to reasons for hope for the future.
It will be essential to carefully monitor the evolution of key indicators in the weeks and months to come in order to seize the opportunities that arise.
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