By Omkar Godbole (All times ET unless indicated otherwise)
Narratives change fast in crypto.
Just yesterday, we talked about weak institutional demand for bitcoin BTC$87,182.66, noting net outflows of over $500 million from spot bitcoin exchange-traded funds (ETFs) in the first two days of the week.
Guess what? On Wednesday, they amassed over $457.3 million, the highest single-day tally in five weeks. That’s a trend that needs to continue to power BTC higher. The bull phases earlier this year saw multiple days of above $500 million in net inflows almost every week.
For the time being, the cryptocurrency remains locked in Wednesday’s indecisive trading range of $86,000-$90,000, with traders awaiting U.S. inflation data due at 8:30 a.m.
A print softer than the expected 3.1% year-on-year figure could prompt renewed risk-taking. Fed member Christopher Waller said on Wednesday that interest rates remain well above the neutral level, meaning there is scope for the central bank to cut.
After that report, focus will shift to the Bank of Japan’s interest-rate decision due late in the day U.S. time, Friday morning in Asia. The central bank is expected to hike rates by 25 basis points to 0.75%. Some observers say that could trigger a rally in the yen, causing risk aversion, although positioning in the FX market suggests low odds of a snap bullish reaction.
XRP is beginning to look increasingly bearish on charts. Veteran trader Peter Brandt called a double-top breakdown in the cryptocurrency, which could see prices fall to $1 or below. It recently changed hands at $1.87.
Ether ETH$2,856.13, the second-largest cryptocurrency, is down over 2% on a 24-hour basis and BNB is trading 1.8% lower. Contrast that with privacy-focused tokens XMR and ZEC, both up 2%. The CoinDesk 20 index was down 1%, while the CoinDesk 80 index was down 3.2%, pointing to weakness in smaller tokens.
In traditional markets, the dollar index rose for a second day, teasing a bull revival. The index hovered at 98.50, while gold dropped to $4,324 after testing the recent resistance zone of $4,340-$4,350. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
