Several noteworthy occurrences have recently been observed in the financial domain. Jobless numbers receded unexpectedly, productivity soared, and digital assets, for their part, exhibited a generally muted response. Bitcoin, the foremost cryptocurrency exhibiting market cap, found itself trading at around $30,374, highlighting a 1% uptick from the day prior.
The coin has been subject to quite a volatile journey in recent times, with fluctuations triggered amidst anticipations of major financial giants like Fidelity Investments muscling their way into the Bitcoin ETF sphere. However, uncertainty prevails as investors mull over the likelihood of a favorable SEC approval and potential inflationary concerns. It’s an interesting push and pull but there’s an underlying sense of optimism as per expert indications.
Nick Rose Ntertsas, CEO and co-founder of NFT platform Ethernity, predicted potential volatility for the rest of the year, prior to a significant surge likely to be witnessed towards 2022’s end and the early phase of 2023. This comes amidst worldwide central bank interventions seemingly pushing liquidity alongside risk assets. It appears that Bitcoin and other digital commodities are not to be excluded from this cycle.
Ether, the second largest cryptocurrency, traded hands at roughly $1,848, signaling a parallel 1% increment from Wednesday’s figure. The Solana blockchain, observed as a noteworthy player, exhibited a staggering 10% upswing in its SOL token.
The overall economy also points at notable figures. Following the recent economic data, the Dow Jones Industrial Average and S&P 500 showed increment by 0.6% and 0.2% respectively. Q1’s Gross domestic Product was upwardly revised to 2%, overtaking the projection of 1.4% growth. Further, jobless claims receding by 26,000 to 239,000 during the week ending June 24 – registered as the most notable reduction since October 2021.
Federal Reserve Chair Jerome Powell, during the Banco de Espana Fourth Conference on Financial Stability, highlighted the ambiguity surrounding the ideal solution for the prevailing inflation. Although there are suggestions about the Fed raising rates in the near future, uncertainty persists in the timeline for cooling inflation back to 2% and its impact on interest rates in the most sensitive sectors of the economy, like housing and investment.
With BlackRock and ETF applications raising market confidence, the industry could potentially witness incoming traditional firms, even amid bear market conditions. Expert opinions seem to suggest a burgeoning acceptance of Bitcoin and digital commodities in mainstream finance – as represented by household names like BlackRock and Fidelity. This bodes well for the future, pointing towards a matured market acceptance of crypto-asset class despite some skepticism.
Source: Coindesk
