The crypto market is mainly driven by broader macroeconomic factors, with a recent US CPI report bringing optimism for cryptocurrencies. A softer-than-expected CPI print has calmed market concerns, reinforcing expectations of impending Fed rate cuts. This has been viewed positively for risk sentiment, potentially dispelling fears of a US recession.
Despite Bitcoin remaining below $61,000 and Ethereum's gas prices slumping, institutional interest in crypto is growing. US spot Bitcoin ETFs saw significant inflows of $2.4 billion in Q2, with major holders like Goldman Sachs and Morgan Stanley.
Coinbase analysts see these ETF inflows, even during Bitcoin's underperformance, as a promising indicator of sustained interest from new capital pools. The upcoming Jackson Hole Economic Symposium could further influence market dynamics and shape the trajectory of crypto markets.
