Crypto markets traded lower on Friday in the face of new data indicating that inflation is slowing in the United States.<\/p>\n
Bitcoin<\/a> is trading 1.4% lower at $60,600, while Ethereum<\/a> is down 1.3%, and Solana<\/a> declined 3.6%, reversing most of its ETF-fueled gains despite a second filing<\/a> from 21Shares today.<\/p>\n Among the top gainers, Akash Network (AKT) climbed 7%, and Ethereum Name Service (ENS) surged 5%. Fetch.ai (FET), Athena (ENA), and Quant (QNT) dropped 5% or more.<\/p>\n According to a report from the Commerce Department released<\/a> on Friday, inflation in May dropped to its lowest annual rate since May 2021.<\/p>\n The core PCE price index increased by 0.1% in May, meeting Dow Jones’ expectations. On a yearly basis, the headline PCE price index rose by 2.6%. The PCE index is crucial for traders as it is closely watched by the Federal Reserve and influences its interest rate decisions.<\/p>\n \u201cToday’s data will likely help to provide additional confidence to the FOMC that the US economy is continuing along what remains a bumpy disinflationary path,\u201d said Michael Brown, Senior Research Strategist at Pepperstone. <\/p>\n \u201cNevertheless, it remains the case that ‘one swallow doesn’t make a summer,’ hence the May PCE figures are unlikely to open the door to a [rate] cut on their own, though do push said door ajar a little more.\u201d<\/p>\n Crypto sentiment was also buoyed by asset management firm VanEck filing<\/a> for a spot Solana ETF on Thursday.<\/p>\n On July 26, Reuters reported<\/a> that spot Ether ETFs could enter the market as early as the first week of July.<\/p>\n Michael Van de Poppe, CEO of MN Trading, said<\/a> that a “significant bloodbath\u201d has occurred in the altcoin markets.<\/p>\n “However, the Ethereum ETF is on the horizon, through which I’m expecting that we’re going to be seeing a reversal of many of the Ethereum ecosystem tokens,\u201d he said.<\/p>\n According to the Crypto Fear and Greed Index<\/a>, market sentiment has shifted into the fear zone amid the recent volatility.<\/p>\n Data from Farside indicates<\/a> that inflows slowed down on Thursday to just $13 million across all Bitcoin spot ETFs.<\/p>\nEthereum ETFs<\/h3>\n
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