Summary
TLDR: Cryptocurrencies declined, Bitcoin and ether fell 3% each. Stocks rebounded slightly after strong retail sales data. Bitcoin may enter halving in the red, event likely already priced in. Equities inched into the green, Fed unlikely to cut rates before summer. Fed Chairman Powell confirms rates will stay higher for longer. Market expectations for rate cuts in 2024 have dwindled.
Key Points
1. Cryptocurrencies continued to decline on Tuesday, with Bitcoin and ether both sliding around 3%, erasing Monday’s slight gains. Bitcoin hovered around $62,400 at the time of publication and is expected to enter its next halving in the red.
2. Some traders are betting on the halving being bitcoin’s next catalyst for a run, but researchers warn that the event is likely already priced in. Michael Zhao, a researcher at Grayscale, stated that a decrease in issuance that is already well-known should not impact the market.
3. Equities saw a modest rebound on Tuesday, with the S&P 500 and Nasdaq Composites gaining about 0.1% by mid-way through the trading session. US retail sales in March exceeded expectations, leading traders to doubt the Federal Reserve will cut interest rates before summer. Fed Chairman Jerome Powell confirmed that rates will need to stay higher for longer, dashing hopes of a June rate cut.