Equities surge on U.S. inflation slowdown – Crypto market gets left out

Equities are riding high thanks to a slowdown in U.S. inflation, pushing stocks closer to record levels. As the Federal Reserve eases off the inflation brake, investors are piling into the market, sending equities soaring. 

But while Wall Street is popping champagne, the crypto market is left out in the cold, caught in a web of uncertainty and missed opportunities.

According to QCP analysts, the easing inflation has breathed new life into the stock market. Investors are growing more confident as inflation slows, leading to a surge in equities. 

The sentiment isn’t just local either. Central banks like the Reserve Bank of New Zealand (RBNZ) are cutting rates, adding fuel to the global fire of monetary easing.

U.S. Bitcoin transfers spook crypto investors

The U.S. government isn’t making life easy for crypto investors either. Recently, Uncle Sam moved 10,000 BTC, worth roughly $591 million, linked to the notorious Silk Road case to a Coinbase wallet. 

The market is on edge, wondering what the government might do next with the remaining 203,239 BTC still sitting in its wallet. 

Even though there’s no word yet on whether the government plans to sell, the fear of a potential dumping spree is enough to keep the market on high alert.

Adding to the uncertainty, the market is still digesting the impact of Jump Trading’s decision to unstake and sell a lot of ETH, but the market showed some surprising resilience. 

Trump flops on crypto

If that wasn’t enough, crypto lovers were left scratching their heads after a much-hyped interview between Donald Trump and Elon Musk. 

The two-hour-long chat was expected to touch on crypto, especially with Musk being a well-known advocate. 

But to the market’s disappointment, crypto didn’t even get a mention. For a community always on the lookout for a new catalyst, this felt like a major letdown.

Yet, despite all these, some market watchers are keeping their hopes up. QCP, for instance, remains bullish as the year progresses. They argue that the market has shown remarkable strength, even in the face of bad news. 

The crypto market’s ability to rally despite Jump’s ETH sale is a case in point. QCP believes that this resilience could set the stage for a strong finish to the year, provided there are no more nasty surprises.

Meanwhile yesterday, spot Bitcoin ETFs saw a net inflow of $36.015 million. While this sounds like a win, not all news was rosy. Grayscale’s GBTC had an outflow of $72.9033 million, so some investors might be jumping ship. 

But Fidelity’s FBTC saw an inflow of $61.3469 million, and BlackRock’s IBIT added $20.3854 million, showing that institutional interest in Bitcoin is still as strong as ever.

Bitcoin holds the line

Despite all this activity, Bitcoin’s price action remains mixed. It saw a recent rebound from the $50K zone after a dip below the 200-day moving average.

But even with this bounce, Bitcoin is struggling to regain its footing above the $63K mark, where the 200-day moving average currently sits. 

This line in the sand is proving to be a tough nut to crack, and until Bitcoin can break above it, the market’s next move remains anyone’s guess.

Right now, the $56K support level is holding strong, keeping Bitcoin from sliding further. But the real question is, for how long? 

A break below this level could open the floodgates for more selling, while a push above the 200-day moving average might signal the start of a new rally.