TLDR
- Bitcoin crossed $61,000 on August 14, 2024, leading gains among major cryptocurrencies
- Traders remain cautious due to upcoming U.S. CPI data and potential further unwinding of the yen carry trade
- The Bank of Japan’s recent rate hike destabilized global markets, affecting Bitcoin and other cryptocurrencies
- TON (Toncoin) saw a 7% increase, with stakeholders citing GameFi growth and Telegram integration as reasons for its rise
- U.S. economic indicators like jobless claims and inflation data are expected to impact market sentiment
Bitcoin, the world’s largest cryptocurrency, surpassed $61,000 on August 14, 2024, during early Asian trading hours. This rise marked a reversal of losses from earlier in the month. Other major cryptocurrencies like Ethereum, Solana, and Cardano also saw gains, though not as significant as Bitcoin’s.
Despite these increases, many traders remain cautious. The upcoming release of U.S. Consumer Price Index (CPI) data has investors on edge.
This data could influence the Federal Reserve’s decision on interest rate cuts in September. Currently, odds are split between a 25 or 50 basis point cut.
Another factor affecting the market is the recent unwinding of the yen carry trade. This occurred after the Bank of Japan raised interest rates for the first time in over a decade.
The rate hike caused instability in global markets, including cryptocurrencies. Bitcoin experienced a 15% drop in a 24-hour period earlier in August, one of its largest recent declines.
Some experts warn that the impact of the yen carry trade unwind may not be over. Richard Kelly from TD Securities expressed caution about declaring an end to this unwinding. He suggested that changes in yen valuation could affect markets for the next one to two years.
In other cryptocurrency news, Toncoin (TON) saw a 7% increase on August 14. Stakeholders in the TON ecosystem point to the growth of GameFi on the platform and its integration with Telegram as reasons for this rise.
John Cheang, the TON Foundation’s Asia-Pacific lead, highlighted the increasing number of players in TON games and the platform’s high transaction speeds.
The broader cryptocurrency market also saw modest growth. The total market capitalization increased by 0.33% to reach $2.088 trillion on August 11, 2024.
Looking ahead, several factors could influence Bitcoin and the wider crypto market. U.S. economic indicators, including jobless claims and inflation data, are expected to play a role in shaping market sentiment.
If inflation is lower than expected, it could reduce the likelihood of aggressive interest rate hikes by the Federal Reserve. This scenario might increase investor interest in Bitcoin and Bitcoin spot Exchange-Traded Funds (ETFs).
However, increased jobless claims could raise concerns about an economic recession in the United States. Such concerns might decrease demand for Bitcoin and related investment products.
Recent legal developments have also impacted the crypto landscape. The Commodity Futures Trading Commission (CFTC) announced that FTX and Alameda must pay $12.7 billion to their creditors. This news caused ripples across financial markets, with some speculation that these creditors might reinvest in cryptocurrencies.
