Cryptocurrency market signaled readiness for correction

On Wednesday, capitalization at the moment exceeded $ 2trillion, however, by the end of the day, most of the gains were leveled. When leaving to lower levels on Thursday, this can provoke profit taking on long positions, which can pick up speed at the end of the working week.

Inflation data in the US did not cause significantmarket reactions, although they left in place the scenario of the Fed’s possible announcement of plans to normalize monetary policy at the end of August-September, which could potentially threaten a shock for all risky assets. But before the meeting JacksonHole investors can remain complacentmoods. In the digital asset market, this may be reflected in the absence of sharp changes in the current bullish consensus. Crypto derivatives continue to indicate the prevalence of optimism, on-chain statistics indicate the accumulation of bitcoins and the withdrawal of coins from exchange wallets.

Acceleration of inflation in the United States in Julypaused. Annual growth rates remained unchanged in June, although they again exceeded expectations. The rod exponent has slowed down. High inflationary expectations and the prerequisites for a new blow from the cost side due to the prospects of a delta strain-induced supply chain disruption in the world do not remove the question of the sustainability of the current inflation, to which the Fed will be forced to react.

The day before, the US Senate approved a bill to$1 trillion in infrastructure spending (which the Congressional Budget Office estimates would lead to a $256 billion deficit), another $3.5 trillion project will be next on the table. This is a positive story for Bitcoin over the long term, which shows further loss of purchasing power of the dollar, but in the moment the focus on Fed monetary policy, which may trigger risk aversion. The correlation between gold and BTC is now negative.

Against the backdrop of the consolidation of Bitcoin and Ethereum, individual altcoins continued to demonstrate strong growth. In the top 10  Cardano and XRP.

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