Cryptos Mixed Ahead Of Release Of Inflation Gauges

Market sentiment for cryptocurrencies remains mixed ahead of the release of key inflation updates from the U.S. as well as U.K.

In data to be released on Tuesday morning, markets expect the producer price inflation in the U.S. in the month of July to be steady at 0.2 percent.

The inflation reading due from the U.K. early on Wednesday is seen rising to 2.3 percent in July from 2 percent earlier.

Consumer price inflation updates for July due from the U.S. on Wednesday are expected to show headline annual inflation declining to 2.9 percent from 3 percent in June. The core component thereof is seen falling to 3.2 percent from 3.3 percent previously. Month-on-month inflation as well as its core component are both seen at 0.2 percent.

Inflation updates assume significance for crypto markets as they tend to sway the interest rate decisions of central banks. As cryptocurrencies are not interest bearing, any change in interest rates increases or decreases the opportunity cost of holding crypto.

Amidst the lingering anxiety, overall crypto market capitalization has decreased to $2.08 trillion from $2.11 trillion a day earlier.

Bitcoin added 0.52 percent overnight to trade at $58,798.85, around 20 percent below the all-time high. BTC has gained 6.8 percent in the past week and more than 39 percent in 2024. The original cryptocurrency traded between $60,680.33 and $57,860.24 in the past 24 hours.

Ethereum however slipped 1.3 percent in the past 24 hours to trade at $2,639.79, around 46 percent below the previous peak. Weekly gains exceed 7.6 percent whereas gains in 2024 have also increased to more than 15 percent. Ether traded between $2,749.14 and $2,595.64 in the past 24 hours.

4th ranked BNB (BNB) gained more than 1 percent overnight to trade at $521.43. 5th ranked Solana (SOL), and 8th ranked Toncoin (TON), both slipped more than 3 percent overnight. 9th ranked Dogecoin (DOGE) and 10th ranked Cardano (ADA) have both erased more than 2 percent in the past 24 hours. 7th ranked XRP (XRP) declined 0.35 percent to trade at $0.5761.

86th ranked SATS (1000SATS) topped overnight gains with a surge of more than 14 percent. 88th ranked ORDI (ORDI) followed with overnight gains of 30.69 percent.

67th ranked Lido DAO (LDO) topped overnight losses with a decline of more than 6.5 percent. 47th ranked dogwifhat (WIF), 33rd ranked Artificial Superintelligence Alliance (FET) and 62nd ranked Ondo (ONDO), all slipped more than 5 percent in the past 24 hours.

Meanwhile, the past week witnessed inflows to digital asset investment products as the price weakness presented a unique buying opportunity. The CoinShares’ Digital Asset Fund Flows Weekly report showed inflows of $176 million during the week ended August 10 as compared with outflows of $528 million during the previous week. Year-to-date flows stood at $22.2 billion whereas cumulative AUM aggregated to $84.9 billion.

Ethereum-based products topped with inflows of $155.4 million. Multi-asset products received inflows of $18.3 million, followed by Bitcoin-based products that recorded inflows of $13 million. Solana-based products also recorded inflows of $4.5 million. Short-Bitcoin products however recorded outflows of $16.2 million.

Close to 80 percent of the cumulative AUM of $84.9 billion is attributed to Bitcoin products that account for an AUM of $67.6 billion. Bitcoin’s dominance of crypto market is much lower, at around 56 percent. AUM of Ethereum products stood at $10.7 billion. Multi-asset portfolios command assets under management of $4.2 billion. An AUM of $1.3 billion is attributed to Solana-based products and $506 million to Binance-based products.

The provider-wise analysis of flows inter alia shows inflows of $408 million to iShares ETF followed by $8 million to 21Shares.

Outflows of $552 million were recorded from Grayscale Investments followed by $77 million from Fidelity ETF and $65 million form Ark 21 Shares. Bitwise ETF also recorded outflows of $12 million.

iShares ETF tops with a cumulative AUM of $21.8 billion implying a share of 25.6 percent. Though year-to-date outflows exceed $18.4 billion, Grayscale Investments still accounts for an AUM of $21 billion, which is 24.73 percent of the cumulative AUM of $84.9 billion. Fidelity commands an AUM of $10.7 billion, followed by 21Shares that has mobilized assets under management to the tune of $3.1 billion.

The country-wise analysis shows weekly inflows of $89 million to United States. Switzerland recorded inflows of more than $21 million followed by Brazil and Canada with inflows exceeding $19 million. Germany also recorded inflows of $12.6 million.

Of the cumulative AUM of $84.9 billion, $64.3 billion or 75.7 percent is in United States. Switzerland follows with AUM of more than $4.5 billion whereas Canada accounts for an AUM of $4.2 billion. Germany accounts for an AUM of $3.6 billion followed by Sweden with an AUM of $2.8 billion.

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