Crypto Markets Drop After Inflation Data Meets Expectations – Crypto News – Crypto News
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Crypto Markets Drop After Inflation Data Meets Expectations Crypto Markets Drop After Inflation Data Meets Expectations

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Crypto Markets Drop After Inflation Data Meets Expectations – Crypto News

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Analysts are optimistic that Ethereum ETFs could launch in June.

Crypto markets traded lower on Friday, following inflation figures aligning with expectations.

Bitcoin dropped 2%, with Ether losing 1% and Solana around 2.5%%, according to data from CoinGecko. Meme coins also posted losses, with Dogecoin, Dogwifhat, Shiba Inu, and FLOKI falling between 3% and 8%.

BTC Price

The Personal Consumption Expenditures (PCE) price index, which excludes food and energy costs, rose by 0.2% for the month, matching the expectations of Dow Jones analysts. The PCE tracks changes in the prices of goods and services consumed by individuals.

U.S. stock markets also dropped after the release of the inflation report. The S&P 500 and Nasdaq are down 0.7% and 1.7%, respectively.

Ether’s relative strength is likely driven by optimism that Ethereum exchange-traded funds (ETFs) could go live by the end of June.

Ethereum ETF Prospects

Bloomberg analyst Eric Balchunas believes the SEC will have one more round of fine-tuning for Ethereum ETF applications.

“End of June launch [is] a legit possibility [although] keeping my o/u date as July 4th,” he said.

BlackRock, the world’s largest asset manager, is moving closer to launching its spot Ethereum ETF. On May 28, the company filed an amended registration statement with the U.S. Securities and Exchange Commission (SEC). The updated S-1 form is a necessary step before the fund can start trading. This filing came nearly a week after the SEC approved the 19b-4 forms for eight Ethereum ETFs, including BlackRock’s iShares Ethereum Trust.

ETF Inflows Subside

Data from Farside shows that Bitcoin ETF inflows are cooling off again.

The total Bitcoin ETF inflows for the week of May 20 were significantly higher, at $1 billion, compared to $122 million for the week of May 27, excluding today.

The highest single-day inflow this week came on May 30 at $49 million.

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