As traders await US economic data, Bitcoin surges past $87,000, while XRP and DOGE rise amid a risk-off mood that is weakening.
Market Watch: XRP, DOGE Rise Amid Risk-Off Mood Weakening
Bitcoin surged through $87,000 early Monday, with Solana (SOL), ‘risk-off mood’ , and ‘traders awaited further U.S. economic data.’ , gaining over 4% as traders awaited further U.S. economic data.
The US economy is a complex system influenced by various factors, including GDP growth rate, inflation rate, unemployment rate, and trade balance.
The Bureau of Labor Statistics (BLS) releases monthly employment data, while the Commerce Department publishes quarterly GDP figures.
The Federal Reserve also monitors economic indicators to inform monetary policy decisions.
Understanding these metrics helps investors, policymakers, and businesses make informed decisions about investments and growth strategies.
U.S. Economic Data: A Catalyst for Crypto Prices
Investors remain cautious ahead of reports on consumer confidence, personal spending, and PCE, which can influence crypto markets. Strong consumer confidence and spending suggest a healthy economy, boosting crypto prices as people invest in riskier assets. However, high ‘rising inflation‘ could worry investors, pushing them toward crypto as a hedge against a weaker dollar.
The U.S. Economy: Stronger Than Thought?
Some traders say the U.S. economy is stronger than thought, making current price levels a good area to buy for medium-to-long-term investors. ‘U.S. ‘hard’ economic data remains robust and in contrast with the soft sentiment, suggesting an over-extrapolation of the current weakness versus underlying fundamentals,’ said Augustine Fan, head of insights at SignalPlus.
Ether Burns Reach Record Low
Ether’s outlook comes as the blockchain saw one of its lowest 24-hour revenues in recent months, sending daily burns to a record low. A burn permanently removes a token from circulation by sending it to an address not controlled by anyone. Just ’50 ETH’ was burned on Sunday, a record low and a nearly 99% drop from the record ‘71,000 ETH’ on May 1, 2022.
Ether burns, also known as EIP-1559, is a protocol upgrade to the Ethereum network implemented in August 2022.
It introduces a new mechanism for transaction fee calculation and burning of a portion of the base fee.
This change aims to reduce congestion on the network by making gas fees more predictable and transparent.
Transactional Activity Declines
Transactional activity has declined over the past few months amid a rising preference for cheaper networks such as Solana and Tron and a general taper-off of speculative trading activity since late January. Daily burns have been gradually declining since early 2023, ranging between ‘500 ETH’ to more than ‘3,000 ETH’.
Market Outlook
The market outlook is characterized by a risk-off mood that persists but weakens amid reports suggesting U.S. tariffs due on April 2 might be more measured than initially expected. Traders are awaiting further U.S. economic data for cues on further positioning.
US tariffs refer to taxes imposed on imported goods by the United States government.
The primary goal of tariffs is to protect domestic industries and promote economic growth.
There are various types of tariffs, including ad valorem (percentage-based) and specific (fixed-amount) duties.
The US has a complex tariff system, with rates varying depending on the product, country of origin, and other factors.
For instance, in 2018, the Trump administration imposed tariffs on imported steel and aluminum from several countries, citing national security concerns.
