Crypto Market in the Red Ahead of Friday's U.S. Inflation Data

Crypto market in the red ahead of Friday's U.S. inflation data, with bitcoin holding steady below $68,000 and altcoins losing up to 5% in value.

Crypto Market in the Red Ahead of Friday’s U.S. Inflation Data

As I sit down to write this article, I can’t help but feel a sense of unease in the crypto market. Bitcoin is holding its own below $68,000, but several altcoins have lost as much as 5% in value. The CoinDesk 20 Index (CD20) has also taken a hit, losing nearly 2% in the past 24 hours. Meme coins SHIB and DOGE are leading the declines, down 5.2% and 3.7% respectively.

Crypto market chart showing decline in prices

Traders are on edge, waiting for Friday’s U.S. PCE announcement, which could spell further losses for the market. Japanese crypto exchange bitBank warned that if the inflation data comes in hotter than expected, bitcoin could give up about half of its gain in the past two weeks and decline to around $65,000.

“If the inflation data comes in hotter than expected, bitcoin could give up about a half of its gain in the past two weeks and decline to around $65,000.” - bitBank

A Spot Ether ETF on the Horizon?

In more positive news, Bloomberg analyst Eric Balchunas believes that the listing of a spot ether ETF by the end of June is a “legit possibility.” This comes after BlackRock filed an amended S-1 form, revealing a “seed capital investor” had purchased the initial shares for the proposed product.

Ether ETF logo

The iShares Ethereum Trust ether ETF will list and trade under the ticker symbol “ETHA.” Subject to regulatory approval, assets held in the ETF can be redeemed for cash or even ether.

NYSE Considers Crypto Trading

The New York Stock Exchange is also considering offering crypto trading, according to its president Lynn Martin. Speaking at Consensus 2024 in Austin, Texas, Martin referred to cryptocurrency trading as “an opportunity to look at.”

Lynn Martin, President of NYSE

Martin believes that the success of bitcoin ETFs has shown that there is a market for regulated crypto trading. The Chicago Mercantile Exchange is also planning to launch spot crypto trading to clients, according to the Financial Times.

Crypto trading platform

As I wrap up this article, I can’t help but feel a sense of uncertainty in the crypto market. Will Friday’s U.S. PCE announcement bring more volatility to the market? Only time will tell.