Bitcoin (BTC) traded sideways around the mid-$27,000s on Tuesday as investors awaited the latest US inflation report on Wednesday.
The largest cryptocurrency by market cap recently traded around $27,560, down 0.2% over the past 24 hours, according to CoinDesk data.
“While the macroeconomic backdrop has remained largely unchanged over the past few weeks,” market watchers will focus on “Binance and whether people are serious about cold-walled crypto,” suggested Edward Moya, senior market analyst for Forex Oanda, in a before Tuesday notice.
“Bitcoin appears to be stuck in a trading range, but if we have a de-risking moment on Wall Street, it will be enough to send crypto to mid-March lows,” Moya wrote.
Ether (ETH), the second largest cryptocurrency, lost about 0.4% on Tuesday to change hands around $1,844. Among other digital assets, Bitcoin Cash’s BCH jumped over 9% for the day to around $121.29, while Lido’s governance token LDO recently surged 6% to $1.85.
The CoinDesk Market Index (CMI), which measures the overall performance of the crypto market, rose about half a percentage point over the day.
Equity markets had mixed performances ahead of the April CPI on Wednesday. The S&P 500 and the tech-heavy Nasdaq Composite closed down 0.4% and 0.6%, respectively. The Dow Jones Industrial Average (DJIA) slipped 0.1%.
In bond markets, the 2-year government bond yield rose 2 basis points to around 4.02%, while the 10-year government bond yield remained almost unchanged at the same time on Monday, hitting 3.52%.
Investors across the board will be watching the CPI for clues as to how the Federal Reserve will act at its next policy meeting in June. The Fed earlier this month approved a 25 basis point (bps) hike to bring interest rates to a 16-year high.
In an interview with CoinDesk, Mark Connors, head of research at Canadian crypto asset manager 3iQ, blamed the Fed for the recent banking crisis, calling the institution “both an arsonist and a firefighter by design.”
“She [The Fed] want to reduce the footprint of banks [while] they want to consolidate them because they’ve lost control of financial stability (and) because of foreign dependency, debt-to-GDP ratio — and now inflation,” said Connors, who believes the Fed will eventually move to more dovish policy.
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