Cryptocurrency Prices on August 14: A Positive Turn for Bitcoin
Bitcoin Rises Amid Soft US Producer Price Index (PPI) Data
On August 14, Bitcoin, the leading digital asset, experienced a notable increase, marking a rise of 2.85% over the past day, placing its trading value at $60,948 by 1:12 pm IST. This uptick in Bitcoin, alongside other significant cryptocurrencies like Ethereum, was primarily driven by the release of softer-than-anticipated US producer prices. Such data has invigorated optimism regarding future consumer price trends and the potential for an interest rate cut by the Federal Reserve.
Ethereum and Other Major Cryptocurrencies Follow Suit
Ethereum, holding the position as the second-largest cryptocurrency by market cap, rose by 2.65% to trade at $2,724. This growth in digital currency markets reflects broader confidence stemming from the decreased cost of services in the US, which fell to their lowest in nearly 1.5 years. This decline indicates reduced inflationary pressure and hints at a possible interest rate cut next month, with traders predicting a 53% chance of a 50-basis-point cut in September.
Market Experts Weigh In
In light of these developments, the CoinDCX Research Team highlighted that the crypto market's positive response was a direct result of the lower-than-expected US PPI figures, pointing out the market's bullish sentiment. The focus now shifts to the upcoming US consumer price data, which investors will be closely monitoring.
Vikram Subburaj, CEO of Giottus, noted Bitcoin's reclaiming of the $61,000 mark, attributing the positive momentum to subdued US wholesale inflation data and substantial net inflows to Exchange Traded Funds (ETFs). Subburaj further suggested that Bitcoin maintaining its position above $60,000 could precipitate a strong rally into September, especially if an interest rate cut becomes more probable.
Broader Cryptocurrency Market Trends
The upward movement was not exclusive to Bitcoin and Ethereum; other prominent cryptocurrencies, such as BNB, Toncoin, Dogecoin, Cardano, Tron, Avalanche, Chainlink, and Shiba Inu, also observed gains up to 7%. Notably, the volume of stablecoins reached $60 billion, accounting for 93.5% of the total crypto market's 24-hour volume, as per CoinMarketCap data.
Current Market Dynamics
Despite the rise, Bitcoin's 24-hour trading volume fell by 19% to $28.8 billion, although its market cap increased to $1.202 trillion, reinforcing its dominance at 56.22%. Edul Patel, CEO of Mudrex, emphasized Bitcoin's resilience, overcoming resistance levels and nearing the $61,500 threshold. However, he cautioned that failing to breach this resistance might lead to a downward trend, pinpointing $59,650 as the next support level.
Disclaimer: The recommendations and opinions expressed by market experts are their own and do not represent the views of The Economic Times.
