Bitcoin, the world’s largest cryptocurrency by market capitalization, remained relatively stagnant on Tuesday, hovering around the mid-$27,000 range. Investors eagerly waited for the latest report for the U.S. inflation, released on Wednesday, for insights into the Federal Reserve’s upcoming monetary policy decision. According to CoinDesk data, Bitcoin traded at roughly $27,560, with a 0.2% drop in the last 24 hours.
Market analysts are paying close attention to Binance, a popular cryptocurrency exchange, and whether individuals are storing their digital assets in cold wallets.
In addition to the above, Edward Moya, the senior market analyst at Oanda, stated that Bitcoin seems to be stagnant in a trading range. However, he cautioned that if there is a moment of de-risking on Wall Street, it could potentially cause cryptocurrencies to return to their mid-March lows.
Among other digital assets, Ether, the second-largest cryptocurrency, experienced a slight decline of around 0.4% and was trading at approximately $1,844. On the other hand, Bitcoin Cash’s BCH surged by over 9% to reach around $121.29, while Lido’s governance token LDO increased by 6% to $1.85.
As for the equity markets, the S&P 500 and the tech-heavy Nasdaq Composite both ended the day with a decline of 0.4% and 0.6%, respectively. The Dow Jones Industrial Average (DJIA) also fell by 0.1%. In the meantime, the 2-year Treasury yield saw an increase of 2 basis points to reach around 4.02%, while the 10-year Treasury yield remained almost steady from Monday, standing at 3.52%.
Investors are eagerly waiting for Wednesday’s Consumer Price Index (CPI) report for April, hoping to gain insights into how the U.S. Federal Reserve will act at its next policy meeting in June. This month, the Fed approved a 25 basis points increase, pushing the Federal Funds rate to its highest level in 16 years.
Mark Connors, head of research for Canadian crypto asset manager 3iQ, criticized the Fed for the recent banking crisis, holding the institution accountable as “both arsonist and firefighter by design.” He believes that the Fed will eventually pivot to a more dovish policy.