What to know:
- Bitcoin rose past $87,000 early Monday, while Solana (SOL), XRP, and Dogecoin (DOGE) experienced gains exceeding 4% as traders awaited further U.S. economic data.
- Despite cautious investor sentiment prior to reports on consumer confidence and spending, some traders view the U.S. economy as robust, providing a favorable buying opportunity.
Bitcoin (BTC) surpassed $87,000 early on Monday, with significant contributions from Solana (SOL), XRP (XRP), and Dogecoin (DOGE) rising over 4% as traders looked for signals from upcoming U.S. economic reports.
Last weekend, Bitcoin fluctuated around $85,000 due to inflationary concerns impacting the broader U.S. economy. SOL led the charge among essential cryptocurrencies with a 5% rise over the last 24 hours, while TRON’s TRX led losses, slipping 4%.
A subtle risk-averse atmosphere lingers despite reports suggesting that upcoming U.S. tariffs might be less severe than initially anticipated. As Nick Ruck, Director at LVRG Research, stated in a message on Telegram, “Investors are remaining cautious on the upcoming price moment due to the uncertainty.”
Consumer confidence reflects Americans’ optimism toward the economy, with high confidence indicating increased spending. Personal spending is vital for economic growth, while PCE (Personal Consumption Expenditures) acts as a crucial inflation measure, revealing price changes in services and goods.
Upcoming reports could significantly impact crypto markets; robust consumer confidence may signal a strong economy, thus increasing crypto prices, while a high PCE may incite concern among investors. If confidence declines, the potential for a downturn could lead to caution among investors and reduce crypto prices.
Yet some traders argue the U.S. economy remains more robust than anticipated, suggesting current price levels present a viable buying opportunity for the bullish investor.
“The U.S. ‘hard’ economic data seems strong and contrasts with soft sentiment, indicating an over-extrapolation of current weaknesses against the real fundamentals,” Augustine Fan, Head of Insights at SignalPlus, communicated to CoinDesk via email. “Macro observers have been more precarious than reality, suggesting the underlying economy is stronger than feared.”
Ether’s prospects wane as the network recorded its lowest revenue in months, resulting in daily burns reaching a historic low. A burn permanently removes tokens from circulation by sending them to an unclaimed address.
Telegram data reveals that only 50 ETH was burned recently, marking a record low and a nearly 99% drop from the peak of 71,000 ETH burnt on May 1, 2022. Following a significant interest decline in speculative trading from late January, transactional activities on Ethereum have dropped considerably, with a preference shifting towards more cost-effective networks like Solana and TRON.
