Biggest Crypto Gainers Today on Uniswap – TRUCK, PROMPTIDE, GROK
Major blue-chip crypto markets are mixed on Monday, with Bitcoin (BTC) dipping back into the mid-$36,000s and Ether (ETH) mounting a challenge of the $2,100 level once again, while most other major altcoins also pull back ahead of the release of key US inflation and retail sales figures later in the week.
The data will have a bearing on market expectations for how much more, if any more tightening the US Federal Reserve will embark upon in the months ahead.
Traditional markets have been increasingly betting in recent weeks that the Fed’s tightening cycle is over, with US stock and bond prices up significantly in November as a result.
But Fed officials have remained hawkish and keen to remind the market that more hikes remain on the table.
If this week’s US data supports the narrative being pushed by the Fed that risks remain tilted towards higher interest rates, this could send US stocks and bond prices lower, creating macro headwinds for crypto.
But investors are likely to continue to buy the dip, amid still growing optimism for near-term spot Bitcoin and Ethereum ETFs.
This optimism has driven huge institutional inflows into the crypto space over the last three weeks, with regulated crypto investment products attracting around $300 million in capital inflows per week over the past three week, according to the latest report from CoinShares.
The continued narrowing of the Grayscale Bitcoin Trust’s discount to the spot value of its Bitcoin holdings further demonstrates how palpable the optimism is.
As per YCharts, the discount just hit its lowest level in over two years at 10%, suggestive investors continue to bet that Grayscale will get its way and be able to convert its Bitcoin Trust to an ETF in the near future.
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