Market Recap: Tech Rally Lifts Stocks While Crypto Shows Divergence
On Friday, U.S. stock indices gained ground led by a rebound in tech giants, though the S&P 500 and Nasdaq still closed lower for the week. Bitcoin reclaimed the $68K level, while Ethereum struggled to maintain parity under persistent selling pressure from Grayscale's ETHE - with ETH posting a 7% weekly decline.
Inflation Data Supports Dovish Fed Outlook
According to CNBC, the U.S. Commerce Department reported:
- June PCE price index rose 0.1% month-over-month (vs. flat in May)
- Annual PCE inflation cooled to 2.5% (from 2.6% in May)
- Figures align with Fed's preferred inflation metric
This moderation in price pressures bolsters expectations for potential September rate cuts, providing macroeconomic tailwinds for crypto assets.
Bitcoin's Key Events to Watch
BTC 2024 Conference Highlights:
- Former President Trump delivering keynote speech
- Rumors of "Bitcoin as reserve asset" endorsement
- Senator Cynthia Lummis expected to propose BTC reserve legislation
Price Action:
BTC climbed from July 25 low of $63,456 to current $68K range (+1.5% 24h)
Bitcoin spot ETFs saw $51.66M net inflows on July 26 (per SoSoValue)
Ethereum Faces Headwinds
ETHE Outflow Impact:
- $163M net outflow from ETH spot ETFs on July 26
- $340M cumulative outflows since launch
- ETHE selling pressure remains primary drag
Silver Lining:
9 ETH spot ETFs now hold $9.24B in AUM (2.36% of ETH's total market cap)
Frequently Asked Questions
Why is ETHE causing such selling pressure?
Grayscale's ETHE fund carries higher fees than competitors, prompting investors to rotate into newer, lower-cost ETH ETFs. This transition creates temporary downward pressure.
What makes the BTC 2024 conference significant?
👉 This high-profile event brings together policymakers and industry leaders, potentially influencing regulatory attitudes toward Bitcoin's institutional adoption.
How might Fed rate cuts affect crypto?
Lower interest rates typically weaken the dollar, making scarce assets like Bitcoin more attractive as alternative stores of value.
Is Ethereum's underperformance temporary?
While short-term flows are negative, the upcoming ETF trading volume surge and network upgrades could reverse this trend. Stay updated with professional analysis.
Risk Disclosure: Cryptocurrency investing involves substantial risk. Prices may fluctuate violently, potentially resulting in total capital loss. Always conduct thorough risk assessment.
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