Bitcoin and Ethereum traded in the red on Thursday evening, as the global cryptocurrency market cap remained nearly flat at $1.2 trillion at press time.
|Bitcoin (CRYPTO: BTC)||-1.3%||-2.2%||$29,732.91|
|Ethereum (CRYPTO: ETH)||-1.4%||-3.8%||$1,761.05|
|Dogecoin (CRYPTO: DOGE)||-0.9%||-5.1%||$0.08|
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Theta Network (THETA)||+6.85%||$1.40|
See Also: Best Crypto Debit Cards
Why It Matters: Volatility was the order of the day Thursday, with inflation back in the limelight ahead of key consumer price index numbers on Friday.
Risk assets were battered as jittery investors sold stocks with consumer prices expected to rise 0.7% in May and core CPI coming in 0.5% higher, according to a Reuters report.
European Central Bank policymakers signaled a 25 basis point rate hike in July on Thursday. The ECB President Christine Lagarde signaled incremental rate hikes for the Eurozone, which has set the ECB apart from the U.S. Federal Reserve, which has been more aggressive on rate hikes.
OANDA senior market analyst Edward Moya said the outlook is darkening and that could emerge as an argument for the Fed to pause rate hikes in September.
“Warning signs about the economy are emerging as weekly jobless claims are starting to rise, China’s COVID situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing,” said Moya, in a note seen by Benzinga.
On the cryptocurrency side, the analyst said, “Bitcoin continues to hover around the $30,000 level as crypto traders await a key inflation report that could sway market expectations as to what the Fed may do in September.
Justin Bennett, a trader, noted the sell-off in U.S. stocks and said we could see lower levels from cryptocurrencies.
Nasty selloff from US stocks.— Justin Bennett (@JustinBennettFX) June 9, 2022
The market is signaling that it expects higher than forecast CPI numbers on Friday at 8:30 am EST.
I still think we see lower from #crypto but time will tell. pic.twitter.com/K9qSFniltg
The correlation between S&P500 and Bitcoin appears to be perfect, according to cryptocurrency trader Michaël van de Poppe.
Correlation coefficient values range from -1 to +1, where +1 indicates a perfect correlation and -1 indicates a perfect negative correlation.
On Thursday the S&P 500 and Nasdaq closed 2.4% and 2.75% lower, respectively. At press time S&P 500 and Nasdaq futures traded 0.07% and 0.09% higher.
There are fewer BTC on exchanges today than in more than four years, according to chartist Ali Martinez.
A decline in the number of coins available on exchanges could indicate low amounts available for sale and an increase in hodling activity by investors.