Bitcoin Surpasses $59K

CoinDesk 20 Index: 1,888 −3.6%

Bitcoin (BTC): $58,764 −3.8%

Ether (ETC): $2,639 −3.7%

S&P 500: 5,455.21 +0.4%

Gold: $2,496 +2.3%

Nikkei 225: 36,726.64 +0.78%

Bitcoin (BTC) is trading around $58,000, down more than 4% in the past 24 hours, erasing all of its gains from the past week. It led the market-wide losses as BTC’s price declines led to major tokens falling. Ether (ETH) fell 3.8%, while Solana (SOL), Cardano (ADA), BNB Chain (BNB), and Ripple all lost 2.5%. Most of the decline came after the US consumer price index (CPI) for July, which rose 2.9% on an annual basis, as expected, dropping below 3% for the first time since 2021.

Despite the NASDAQ and S&P 500 reversing their sell-offs and both ending the day in the green, BTC continued to sell off after the CPI pressure. According to K33 Research, crypto prices have been quite sensitive to US economic data in recent months. Investors also prefer stability over risk assets. As such, some traders expect BTC prices to fall to $55,000 in the near term, which could mean further losses for major tokens. “The likely scenario is a potential pullback to $55,000 followed by renewed sell-offs,” FxPro senior market analyst Alex Kuptsikevich said. “The data supporting the Fed’s imminent easing of monetary policy could encourage bulls to overcome the short-term downtrend and give the green light for a rally to $66,000.”

US-listed spot bitcoin exchange-traded funds (ETFs) recorded net outflows of $81 million yesterday, ending a two-day positive streak. Grayscale’s GBTC saw outflows of $56 million, while Fidelity’s FBTC saw outflows of $18 million. Ark Invest’s ARKB and Bitwise’s BITB lost $6.7 million and $5.7 million, respectively. Franklin Templeton’s EZBC and BlackRock’s IBIT were the only products to record net inflows, with a cumulative $6 million. Ether ETFs fared better with net inflows of $10 million, extending the streak to three days. BlackRock’s ETHA saw inflows of $16 million, while Grayscale’s ETHE saw outflows of $16 million. Grayscale’s mini Ether trust ETH, Fidelity’s FETH, and Bitwise’s ETHW recorded cumulative inflows of $11 million.