Cryptocurrency markets are off to a relatively slow start this week, with Bitcoin down 3.44% and Ethereum price down 3% in the past 24 hours. BTC remains above the $20k support level, while ETH holds the $1.1k support level. The global cryptocurrency market is down 2.82% but remains above $915 trillion, signaling that the market continues to trade sideways.
Market on Hold Until July 13th?
Both the cryptocurrency and stock markets are awaiting the release of the upcoming CPI (Consumer Price Index) numbers on July 13th before making their next move. In two days, we will have a clearer picture of the direction of the global economy, specifically the state of inflation in the U.S.
The latest numbers for May indicated a 1% rise in all CPI numbers for food, gasoline, and shelter, suggesting rising inflation. If the CPI numbers can level off or even show a decrease in overall inflation, that would be one of the first signs that the market could be turning from a bearish to bullish sentiment.
Even if the CPI numbers show a decrease in the overall inflation, it would still be too early to tell whether a market trend reversal is in store, but it would undoubtedly provide a hopeful sign.
Mortgage Rates Saw Significant Decrease Last Week
Some of the most positive news last week was a sharp decrease in mortgage rates, which fell by 5%. Purchasing a home became much cheaper, which could incentivize the housing market, which has been slowing down in recent months.
According to a report from Yahoo Finance, a 5% decrease in mortgage rates “translates to savings of about $100 on a typical monthly mortgage payment.”
Chinese Stocks Hit Hard
Today, all the attention is on the Chinese stock market, which has been hit relatively hard as tech giants saw substantial bearish momentum after opening this week.
According to a report from Bloomberg:
“The losses came after China’s State Administration for Market Regulation fined the two tech giants [Alibaba Group Holdings Ltd. and Tencent Holdings Ltd.] for not properly reporting past deals, indicating how fragile investor mood remains toward the sector.”
Crypto Market Update
The global cryptocurrency market traded sideways this weekend, not seeing any significant corrections in the past several days. Bitcoin and Ethereum manage to hold current support levels, which spells good news for a potential upcoming cryptocurrency bear market rebound.
The CPI numbers are the major event this week that could sway the market in either direction, and it’s clear that traders are eagerly awaiting their release on Wednesday.
The long-term sentiment for cryptocurrency remains bullish and now is an excellent opportunity to accumulate various digital assets for a low price and Dollar-Cost Average your investments down.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: peterschreibermedia/123RF