Cryptocurrency markets declined early on Tuesday, with top cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) both shedding more than 3 percent in the past 24 hours. The inflation readings for the month of July are due Wednesday and markets are eagerly waiting how it would impact the Fed's rate hike plans.
World markets remained sober ahead of the release of the inflation readings from the U.S. for the month of July, due on Wednesday.
Markets remained firm despite worries of a large rate hike by the ECB in its August meeting. Easing geopolitical tensions also helped shore up the sentiment. Oil prices recovered after touching a multi-month low on demand concerns.
Cryptocurrencies made strong gains early on Wednesday amidst easing geopolitical tensions and positive sentiment in stock markets worldwide. Market capitalization increased more than 3 percent to $1.08 trillion, versus $1.06 trillion a day earlier.
Market sentiment oscillated between the optimism generated by corporate earnings and the negative sentiment triggered by the rising geopolitical tensions, following the visit of a high-ranking U.S. official to Taiwan, which China claims as its territory.
Cryptocurrencies extended losses amidst rising geopolitical tensions that played spoilsport with global financial markets. Rising political tensions between the U.S. and China appeared to dampen the sentiment in markets already depressed by the challenging macro-economic conditions.
Rising geopolitical tensions between U.S. and China impacted stock markets worldwide, dragging down benchmarks in Asia, Europe as well as at Wall Street. Concerns surrounding economic growth too dampened market sentiment.
July was both an eventful and strong month for cryptocurrencies. Despite the turbulence that the external and internal market factors triggered, cryptocurrencies surged ahead, shrugging off macro-economic concerns as well as the disturbing developments within the crypto industry.
World markets rallied as upbeat corporate earnings data helped revive market sentiment. Expectations that the Fed may slow down its interest rate hikes added to the positive sentiment. Crude prices however dropped ahead of the OPEC+ meeting later in the week.
World markets rallied as relief over the Fed's action and stance on expected lines bolstered investor sentiment. GDP data from the U.S is expected later in the day and the American economy is expected to have grown by 0.50 percent.