The cryptocurrency markets are experiencing a notable rally as traders position themselves ahead of significant economic data releases in the coming week, particularly focusing on inflation metrics and potential liquidity from sources including the U.S. Treasury. Major cryptocurrencies have benefited from this positive momentum, with Bitcoin (BTC) seeing an increase of approximately 1.3% over the last 24 hours, currently trading at around $55,160.
Ethereum (ETH), another leader in the crypto sphere, has also surged by 0.9%, bringing its price to $2,318. However, Solana (SOL), regarded as the fifth-largest cryptocurrency by market capitalization and a likely candidate for future U.S.-listed exchange-traded funds (ETFs), experienced a slight decline of 0.7%. The overall global market capitalization for cryptocurrencies has gained 1.1%, reaching a substantial $1.96 trillion.
The CoinDesk Market Index, which provides insights into the performance of digital assets, mirrored this growth with an increase of 1.1% in the same 24-hour window. Arthur Hayes, the founder of the renowned crypto exchange BitMEX, shared insights via X on Sunday. He disclosed that he had closed his Bitcoin short position, expressing optimism regarding a potential increase in the asset's value amid expectations of additional dollar liquidity.
Hayes also commented on Treasury Secretary Janet Yellen, suggesting that if the markets descend further, she would certainly augment the liquidity by 'printing more money.' This outlook comes as U.S. equity futures showed bullish signs pre-bell on Monday, recovering from sharp declines that capped last week's trading. In the ETF segment, Bitcoin exchange-traded funds saw a surge in spot price, with Bitwise Bitcoin ETF (BITB) climbing by 3.5% and iShares Bitcoin Trust (IBIT) not far behind with a rise of 3.3%.
Conversely, the group’s 11 ETFs reported considerable outflows, totaling $170 million last Friday, according to analytics compiled by Farside Investors. Ethereum-focused ETFs also enjoyed gains on Monday. Both Fidelity Ethereum Fund (FETH) and Grayscale Ethereum Mini Trust (ETH) posted impressive increases of 4.8%.
Despite this positive turn in fortunes, Ethereum ETFs experienced cumulative outflows of $6 million last Friday, per Farside’s data. Looking ahead, the economic landscape is poised for pivotal developments. Traders are eagerly awaiting Wednesday’s Consumer Price Index (CPI) release and Thursday’s Producer Price Index (PPI) for August, which will shed light on inflation trends.
Additionally, the weekly initial jobless claims report, also scheduled for Thursday, will offer vital data on labor market conditions, especially in the context of last Friday’s payroll report which fell short of analysts' expectations..