Cryptocurrencies Decline As Positive Economic Data Boosts US Economy

Major cryptocurrencies experienced a decline on Tuesday evening following the release of positive economic data confirming sustained growth in the U.S. economy.

Cryptocurrency

Gains +/-

Price (Recorded 9:30 p.m. EDT)

Bitcoin (CRYPTO: BTC)

-0.36%

$29,996

Ethereum (CRYPTO: ETH)

-0.20%

$1908

Dogecoin (CRYPTO: DOGE)

-1.19%

$0.069

The retail sales report from the US Census Bureau for June initially appeared to show some weakness, as the number only rose by 0.2% compared to the forecasted 0.5% and May’s 0.5%.

However, a closer look at the report reveals a more positive picture. The retail sales “control group,” which provides a more accurate measure of consumer spending by filtering out certain components, actually increased by 0.6% in June. 

This is more than double the pace seen in May and surpassed expectations, which predicted a decline of 0.3%.

Top Gainer (24 Hour)

Cryptocurrency

Gains +/-

Price (Recorded 9:30 p.m. EDT)

XRP

+6.98%

$0.7893

BitDAO

+6.59%

$0.5443

Stellar

+4.84%

$0.135

At the time of writing, the global crypto market capitalization stood at $1.21 trillion, a decrease of 0.34% over the last day. 

The US stocks showed positive momentum on Tuesday as traders processed strong corporate earnings results. The Nasdaq Composite saw a rise of 0.76%, while the S&P 500 experienced a gain of 0.71%.

“Bitcoin continues to waver, tentatively falling below the $30,000 level, which is just the June low. ​ As the cryptoverse awaits a pivotal Bitcoin ETF update, flows remain dormant. ​ The institutional money is not buying right now and retail is struggling with the current macro backdrop,” wrote Edward Moya, Senior Analyst at OANDA.

He added, “Bitcoin seems poised to be stuck in a range, which could warrant a slightly further dip towards the $29,500 level.”

Michael Van de Poppe highlights the striking resemblance between Dogecoin’s current market structure and XRP’s price action prior to the recent surge. 

By overlaying XRP’s 12-hour chart with Dogecoin’s line chart, Van de Poppe demonstrates that DOGE is closely following the market structure of the fourth-largest cryptocurrency.

According to the crypto trader, if Dogecoin continues on a similar trajectory as XRP, this popular memecoin could potentially experience a rally of up to 157% from its current prices.  “We’re on the edge of having a runner to maybe $0.15 to $0.18 on DOGE.” 

Raoul Pal, a former Goldman Sachs executive, suggests that the approval of a spot BTC ETF could align with an increasingly bullish crypto market. “So if we continue the way we’ve been going and prices are rising, and let’s say Bitcoin’s at $40,000 by the time the ETF comes in, there’s going to be a blind panic. Because everybody kind of knows that it’s very cyclical as an asset, and that when the cycle goes it can have tremendous returns.”

Produced in association with Benzinga

Edited by Saba Fatima and Maham Javaid