Cryptocurrency Moves Limited, Investors Await New Catalyst
Bitcoin moved slightly lower on Thursday (July 16th) after recovering in recent sessions. Previous support came from lower-than-expected US inflation data, easing market concerns about an imminent Fed interest rate hike.
Bitcoin fell 0.9% to around US$64,160.4 as of 5:23 a.m. ET (09:23 a.m. GMT). Despite the daily decline, the world's largest cryptocurrency is still up around 1.6% for the week after recovering from its lowest level this year.
Bitcoin's recovery occurred as the market began to reduce expectations that the Fed would soon raise interest rates. More benign US CPI and PPI data for June signaled that inflationary pressures were easing, giving riskier assets like crypto room to rebound.
However, the pressure has not completely dissipated. The conflict between the US and Iran continues to weigh on market sentiment, as the two countries exchanged attacks for the fifth consecutive day. Disruptions to oil flows in the Strait of Hormuz also pushed up energy prices and resurfaced inflation risks.
This situation has investors remaining cautious. If oil prices continue to rise, inflation could rise again in the coming months, opening the door for the Fed to maintain high interest rates for longer. This puts a strain on Bitcoin and other non-yielding cryptocurrencies.
In the altcoin market, movement remained limited. Ether edged up 0.3% to around US$1,885.19, while XRP weakened 0.3%. Solana fell 1.8%, Cardano weakened 1.2%, BNB rose slightly, while Dogecoin and TRUMP moved less than 1%. Consequently, the market still needs a new catalyst to continue its rally, while risks from oil, geopolitics, and the direction of interest rates remain major obstacles. (arl)
Source: Newsmaker.id
