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First Mover Americas: Bitcoin Holds $58K Ahead of U.S Inflation Report
The latest price moves in crypto markets in context for July 11, 2024.
Updated Jul 11, 2024, 12:03 p.m. Published Jul 11, 2024, 12:03 p.m.
This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
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Bitcoin (BTC) held its $58,000 price level throughout the European morning before a U.S. inflation report due at 8:30 ET (12:30 UTC). Following a dip toward $57,000 at about 3:30 UTC, BTC is sitting around $58,400 at the time of writing, down 0.34% in the last 24 hours. The CoinDesk 20 Index, which offers a measurement of the broader digital asset market, has risen around 0.2%, suggesting traders are sitting on their hands waiting for the CPI report, which will offer the latest indication on the prospect of a cut to interest rates.
The U.S. CPI data is expected to show the cost of living rose 0.1% in June after remaining flat in May, leading to a 3.1% rise year over year. If the figure matches estimates, it would confirm more progress toward the Fed's 2% inflation target and set the stage for the bank to begin a much-anticipated rate cut cycle this year. Increased prospects of interest-rate cuts will likely bode well for risk assets, including bitcoin, helping the leading cryptocurrency extend its price recovery from the lows seen earlier this month. CoinDesk data show that the recovery has stalled, with buyers struggling to establish a foothold above $59,000.
The amount of ether {{ETH}] staked is nearing a record high as the prospect of a spot ether ETF in the U.S. comes closer to reality. "The total number of staked ETH has continued to increase and sits near its all-time high as it stands at 33.3 million ETH or 27.7% of the total supply," Julio Moreno, CryptoQuant's head of research, wrote in a note shared with CoinDesk. The increasing supply of ether is a sign it has returned to being an inflationary asset, undermining its capability to act as a store of value over time. There are ways to counter this such as staking, which locks ether for a fixed period of time, and burning – or permanently removing from circulation – a portion of the transaction fees paid by users.
Chart of the Day
- While bitcoin's price sell-off has stalled, it is yet to clear the downtrend line, characterizing the mini bear market from record highs above $70,000.
- A potential breakout could draw in momentum traders.
- Source: TradingView
- Omkar Godbole
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Jamie Crawley
Jamie joined CoinDesk as a news reporter in February 2021 after writing widely about crypto and blockchain for two years in other roles. Away from crypto, Jamie runs a lot and loves all things sport. He holds small amounts of BTC, ETH, ADA and LTC.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
