The current rally in the cryptocurrency market is supported by favorable macroeconomic conditions and the strengthening of institutional participation. This was reported in the Deepthink report from HTX Research.
According to the report, the consumer price index (CPI) in the United States showed a further slowdown in inflation up to 2.3% in annual calculus (against the expected 2.4% and the previous value of 2.6%), reaching the minimum level since March 2021. The basic CPI amounted to 2.8%, which corresponds to forecasts and below the previous value of 3%.
The decrease in inflationary pressure increased the expectation of a decrease in the percentage rates of the Fed in the second half of the year, which positively affected the digital assets market.
Against this background, the first cryptocurrency again overcame the $ 100,000 mark, and Ethereum (ETH) and SOLANA (SOL) demonstrated significant growth. Open interest in Bitcoin futures remain at a high level – about 660,000 BTC (3.4% of the total offer), which indicates strong institutional positions.
Despite optimistic moods, analysts warn of the risks of short -term volatility. Onchain-data show that the profit of the short-term Holders ETH reached about 90%, and SOL-88%, approaching historically high values. As a rule, indicators more than 90% signals the risk of local correction.
In HTX, they conclude that the general structure of the market is still determined by the “medium-term structural bull trend in combination with the short-term phase of consolidation.”
On May 13, HTX, in partnership with seven blockchain projects, launched a two-week action in honor of Bitcoin Pizza Day with a prize pool of $ 200,000.
Be in the know! Subscribe to Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
