The cryptocurrency market experienced a mixed response ahead of the Monday opening of US equities, particularly in light of President Joe Biden's withdrawal from the upcoming presidential race. This political development has ignited optimism among crypto enthusiasts, who believe a potential Donald Trump presidency could provide a favorable landscape for the cryptocurrency industry.
In the past 24 hours, Bitcoin (BTC) demonstrated a modest increase of over 0.5%, trading at approximately $67,375, as reported by CoinMarketCap. Conversely, Ethereum (ETH) faced a slight decline of 0.4%, settling at $3,491. Notably, Solana (SOL), which ranks as the fifth-largest digital asset by market capitalization, experienced a significant rise of 3.7%, reaching $179.22. There is growing speculation that Solana could soon serve as the underlying asset for US-listed exchange-traded funds (ETFs) following Ethereum.
The Cboe recently announced that five spot price Ethereum ETFs are scheduled to begin trading on Tuesday, pending the necessary regulatory approvals. Overall, the global cryptocurrency market capitalization saw an uptick of over 0.5% to approximately $2.45 trillion. Furthermore, the CoinDesk Market Index, which closely follows the performance of various digital assets, recorded a 0.8% increase in the past 24 hours. In a notable assertion, Markus Thielen, founder of 10x Research, indicated that the US government currently holds around 212,800 BTC, valued at roughly $15 billion.
In comparison, the government's gold reserves amount to approximately $600 billion. Thielen elaborated, ‘If Trump announced that Bitcoin would play a more significant role within the US financial reserve management, the US Treasury would likely support this move, which could lead to substantial implications for the cryptocurrency market.’ President Trump is slated to speak at an industry conference in Nashville next week, further fueling speculation about his influence on the crypto landscape. Last week marked a significant milestone for the US-traded spot price Bitcoin ETFs, recording total net inflows of nearly $1.2 billion, according to data compiled by Farside Investors.
This surge signifies growing institutional interest in Bitcoin as a viable investment asset. Looking ahead, key economic data releases will shape market sentiment this week. This includes the National Association of Realtors' report on existing home sales, set for Tuesday, followed by S&P Global's manufacturing purchasing managers' index due for release on Wednesday.
Thursday will feature the preliminary reading of second-quarter economic growth, with Friday's data release focusing on personal income and outlays for June, which includes the Federal Reserve's preferred consumer inflation measure. Policymakers are currently maintaining a low profile in anticipation of next week’s Federal Open Market Committee meeting.
While no immediate changes in interest rates are anticipated, there exists a noteworthy 92% probability of a rate cut in September, positioning the target rate between 5% and 5.25%, as indicated by the CME FedWatch tool..