[Bitcoin Now] Stuck in the $29,000 Range... Stablecoin Exchange Inflows Also ↓

The representative cryptocurrency Bitcoin price is showing a sideways trend without rebounding above the $29,000 level. This is interpreted as being influenced by limited inflows of trading funds, such as the decrease in the amount of stablecoins held by exchanges, which serve as a means of coin trading.

Image source=Reuters·Yonhap News

According to the global cryptocurrency market relay site CoinMarketCap as of 10:59 AM on the 30th, the Bitcoin price was recorded at $29,334 (approximately 37.49 million KRW), down 0.13% from the previous day. Since reaching the $30,200 level on the 24th of this month, Bitcoin prices have been declining and have been trapped in the $29,000 box range. On the 28th, it even dropped to $29,028, creating a precarious situation for the $29,000 level.

Despite news that the June inflation indicator preferred by the U.S. Federal Reserve (Fed) has slowed, Bitcoin prices have shown little movement. The June core Personal Consumption Expenditures (PCE) price index, which excludes volatile energy and food prices, rose 4.1% compared to the same period last year. This is a slowdown from the market expectation of a 4.2% increase and the previous month’s 4.6% rise. U.S. personal consumption expenditures in June increased by 0.5% from the previous month, meeting market expectations and rising from the prior 0.2% increase. Following a 2.4% GDP growth rate in the second quarter, consumption also maintained an upward trend, further strengthening optimism about the economy.

Earlier, the Fed raised the benchmark interest rate by 0.25 percentage points at the July Federal Open Market Committee (FOMC) regular meeting and stated that future decisions, including the September meeting, would depend on economic indicators. Fed Chair Jerome Powell has left open the possibility of both raising or holding the benchmark interest rate in September. He said, "If the data supports it, raising the benchmark interest rate at the September meeting is certainly possible," but also added, "If the data calls for it, choosing to maintain the benchmark interest rate at the September meeting is also possible."

The limited price increase despite positive signals is understood to be due to the lack of improvement in the inflow of funds for trading. According to data from cryptocurrency data provider CryptoQuant, the amount of stablecoins held by cryptocurrency exchanges is decreasing. As of this day, it was identified as 18,050,050,000 units, down from 18,335,920,000 units recorded on the 26th. Stablecoins are cryptocurrencies designed to be pegged to fiat currencies. Since stablecoins serve as the base currency in the cryptocurrency market, a decrease in the amount held by exchanges is interpreted as a reduction in the frequency of coin trading.

For Tether (USDT), the largest stablecoin by market capitalization, the daily trading volume on the 1st of this month was $19,795,360,000, but it decreased to $11,962,850,000 on the previous day, the lowest this month.

Cryptocurrency investor sentiment also remains neutral. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investor sentiment as an index, was unchanged at 52 points (neutral) from the previous day. Compared to 54 points (neutral) a week ago, it fell by 2 points. Until the 24th, it showed a greed level of 55 points, but investor sentiment has worsened. Alternative’s Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.