The cryptocurrency market is experiencing a sharp decline due to the July PPI data from the United States exceeding expectations, reducing hopes for a comprehensive interest rate cut.
The widespread price decline across many segments, with the meme cryptocurrency sector dropping nearly 9%, and Ethereum and Bitcoin also losing significant value, reflects the market sentiment being negatively affected.
MAIN CONTENT
The July PPI index in the United States rose sharply, reducing expectations for interest rate cuts.
The cryptocurrency meme sector and fields like Layer1, DeFi, and Layer2 are all experiencing significant price declines.
Ethereum and Bitcoin are experiencing downward fluctuations, but some individual tokens are notably increasing in price.
What causes the cryptocurrency market to decline?
The July PPI index in the United States is significantly higher than expected, putting pressure on the global cryptocurrency market.
PPI data shows that inflation has not yet been strongly contained, causing investors to lower expectations for interest rate cuts in the upcoming September. This leads to cautious sentiment, reducing buying demand, resulting in a general decline across both large and small cryptocurrencies.
Market sentiment is becoming colder due to the negative impact of economic information, causing capitalization and liquidity to decrease, increasing price volatility.
How is the meme cryptocurrency sector and other fields affected?
The meme cryptocurrency sector has declined by 8.62% in the past 24 hours, with tokens like PEPE, SPX, and FARTCOIN losing over 10%.
Other important segments are also under price pressure: Layer1 fell by 3.25%, with ALGO dropping 9.86%; PayFi lost up to 6.57%, while DeFi saw a decline of 6.65%.
Notably, some tokens continue to maintain or increase in price, such as Saros (2.19%), Aerodrome Finance (2.28%), and SKALE surging by 47.98% while the entire Layer2 sector declined by 6.73%.
How did Ethereum and Bitcoin fluctuate during this decline?
Ethereum dropped 2.43%, at one point falling below 4,500 USD before recovering above 4,600 USD.
Bitcoin fell 3.85%, dropping sharply below the threshold of 119,000 USD during the same period. This price level reflects selling pressure and increased caution among investors in the leading cryptocurrency market.
This development shows the sensitivity of major coins to macroeconomic news and global monetary policy.
Pressure from high PPI data has lowered expectations for interest rate cuts, leading to a marked adjustment in many cryptocurrency segments, necessitating investors to consider more carefully in the short term.
Economic analyst Nguyen Van An, 2024
What does the cryptocurrency industry index indicate about market trends?
Industry indicators such as ssiGameFi, ssiMeme, and ssiAI all recorded declines of over 8%. This reflects a decrease in demand and the cautious sentiment of investors towards the cryptocurrency technology sectors at this time.
The downward trend in many industry groups indicates that the market is in an overall adjustment phase, influenced by macroeconomic fluctuations and rapid changes in investor sentiment.
Which cryptocurrency segments are showing notable positive movements?
Although the overall market is weakening, the LEO token in CeFi increased by 1.57%, Saros and Aerodrome Finance in DeFi also saw slight increases over 2%, while SKALE in Layer2 even surged nearly 48%, standing out amid the overall downward trend.
Positive fluctuations indicate that short-term opportunities still exist, but thorough analysis of fundamental factors and accompanying risks is necessary for effective investment.
Frequently asked questions
Why do PPI indices have a strong impact on the cryptocurrency market?
PPI reflects production price levels, related to inflation and monetary policy, directly affecting market sentiment and investment decisions in the cryptocurrency market.
Is the decline of Ethereum and Bitcoin a sign of a long-term trend?
Current short-term fluctuations are mainly due to economic news, not enough to confirm a long-term trend; further monitoring of technical and fundamental indicators is needed.
How can investors cope with the simultaneous price declines across cryptocurrency industries?
Diversifying the portfolio, staying updated with news, and using risk management tools help mitigate impacts during strong market fluctuations.
Which tokens have the potential for growth in the context of the market adjustment?
Tokens like SKALE, Saros, and Aerodrome Finance are experiencing good price increases, demonstrating potential due to fundamental factors and specific applications.
How effective is tracking industry indices?
Industry indices help assess the health of each segment, supporting investors in gaining an overview of trends and selecting suitable opportunities.
Source: https://tintucbitcoin.com/meme-coin-eth-dong-loat-giam-sau/
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