As a new week begins, crypto traders and investors are grappling with mixed signals and uncertainty regarding the future trajectory of cryptocurrency values, according to analysts at CoinDesk Indices. The possibility of stagflation, characterized by high inflation and sluggish asset growth in the US market, is casting a shadow over the industry.
“The weaker-than-expected US GDP growth of 1.6% points to a slower economy, while a higher core personal consumption expenditure (PCE) index of 3.4% indicates growing inflationary pressures,” commented industry experts.
Expert opinions point towards Treasury Secretary Janet Yellen’s fiscal strategy as a potential hindrance to the digital asset market’s growth. Yellen’s utilization of the Treasury General Account (TGA), which boasts assets worth around $1 trillion, alongside the Repurchase Program (RRP) with a budget exceeding $400 billion, aims to support the US economy.
On Monday, April 29, the value of the leading cryptocurrency, Bitcoin, dropped to levels similar to mid-March, ranging between $61,900 and $62,400.
Bitcoin’s value has diminished by approximately 6% over the course of the week, with the past 24 hours witnessing a decline of around 2%.
Ether, on the other hand, is currently trading between $2,800 and $3,200, experiencing a 14% drop from mid-April levels. Nevertheless, in contrast to Bitcoin, Ether’s price is relatively stable, having remained within the range of $3,125 to $3,260 over the past two weeks.
Consequently, the total market capitalization of the digital asset market has decreased by 2.5% to $2.31 trillion.
Earlier, the Bits.media platform published an extensive analysis highlighting the factors impeding the growth of Bitcoin and Ethereum.