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▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT Generated Image ©
As the New York stock market continues its record-breaking rally, the cryptocurrency market has only seen a slight rebound and is struggling to gain upward momentum. Delays in processing the Clarity Act, a U.S. cryptocurrency market structure bill, along with the Middle East war and concerns over interest rate hikes, continue to weigh on risk asset investment sentiment.
According to CoinMarketCap, as of 7:07 AM KST on August 9, the total cryptocurrency market capitalization increased by 0.3% from 24 hours ago to $2.21 trillion. The CoinMarketCap20 index rose by 0.27% over 24 hours and 3.47% over the past 7 days. The Fear & Greed Index remained at 40, indicating that investor sentiment has not significantly recovered. The 24-hour liquidation volume decreased by 70.04% to $55.56 million, suggesting a calming trend in the deleveraging of excessive leverage positions.
Bitcoin (BTC), the top cryptocurrency by market capitalization, only rose by 0.11% in 24 hours to $64,954.01, but increased by 3.46% on a weekly basis. Ethereum (ETH) rose by 0.22% in a day and 3.96% over a week to $1,918.64. BNB recorded a 24-hour increase of 1.47% and a weekly increase of 4.42% to $601.01.
Among altcoins, Solana (SOL) showed relatively strong performance, rising by 3.49% in 24 hours and 5.99% over the past 7 days to $76.16. HyperLiquid (HYPE) also increased by 1.79% in a day and 5.59% weekly to $55.07. Dogecoin (DOGE) rose by 1.70% and 2.63% respectively to $0.07086. In contrast, XRP (Ripple) rebounded by 1.91% in 24 hours to $1.04 but fell by 1.66% over the past 7 days, showing a notable weakness among major assets.
The slight rebound today is attributed to the easing of aggressive interest rate hike concerns, as U.S. non-farm employment in July fell more than 100,000 below market expectations. However, the record strength of the New York stock market has not fully spread to the cryptocurrency market. Policy uncertainty due to delays in processing the Clarity Act, armed conflict between the U.S. and Iran, and oil and inflation burdens resulting from the prolonged closure of the Strait of Hormuz are restricting further gains for virtual assets.
This week, the market's direction is expected to be determined by the U.S. July Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales. The market anticipates July CPI to rise by 3.4% year-over-year, a slight slowdown from June's 3.5%, but still significantly above the Federal Reserve's (Fed) target of 2%. The CME FedWatch Tool shows a 44.5% probability of a 25bp interest rate hike by year-end, up from 40.7% a week ago.
If inflation exceeds expectations, the outlook for interest rate hikes and upward pressure on the dollar and treasury yields will strengthen, potentially leading to another correction for cryptocurrencies, including Bitcoin. Conversely, if a slowdown in inflation is confirmed, coupled with employment shocks, tightening concerns could ease, allowing the weekly rebound to continue. However, uncertainties such as the Middle East conflict and the delay of the Clarity Act remain, suggesting that this week will likely see a volatile market fluctuating according to economic indicators rather than a sustained upward trend.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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