In short

• Bitcoin surpassed $61,000 on August 14, 2024, sending major cryptocurrencies soaring
• Traders remain cautious ahead of upcoming US CPI data and possible further unwinding of the yen carry trade
• The Bank of Japan’s recent rate hike destabilized global markets, impacting Bitcoin and other cryptocurrencies
• TON (Toncoin) saw a 7% surge, with stakeholders citing GameFi growth and Telegram integration as reasons for the rise
• US economic indicators such as jobless claims and inflation figures are expected to impact market sentiment

Bitcoin, the world’s largest cryptocurrency, surpassed $61,000 on August 14, 2024, during early Asian trading hours. The surge marked a reversal of losses from earlier in the month. Other major cryptocurrencies such as Ethereum, Solana and Cardano also saw gains, though not as significant as Bitcoin’s.

Despite these gains, many traders remain cautious. The upcoming release of the US Consumer Price Index (CPI) data has investors on edge.

This data could influence the Federal Reserve’s decision on rate cuts in September. Currently, the odds are split between a 25- or 50-basis-point cut.

Another factor influencing the market is the recent unwinding of the yen carry trade, which occurred after the Bank of Japan raised interest rates for the first time in more than a decade.

The rate hike has caused volatility in global markets, including cryptocurrencies. Bitcoin had earlier in August fallen 15% in a 24-hour period, one of the largest drops in recent history.

Some experts warn that the impact of the yen carry trade unwind may not be over yet. Richard Kelly of TD Securities expressed caution about calling an end to this unwinding. He suggested that changes in the yen’s valuation could affect markets over the next one to two years.

In other cryptocurrency news, Toncoin (TON) saw a 7% surge on August 14. Stakeholders in the TON ecosystem point to GameFi’s growth on the platform and its integration with Telegram as reasons for the surge.

John Cheang, TON Foundation Head of Asia Pacific, highlighted the growing number of players in TON games and the platform’s high transaction speeds.

The broader cryptocurrency market also saw modest growth, with the total market cap rising 0.33% to $2.088 trillion as of August 11, 2024.

Looking ahead, several factors could influence Bitcoin and the broader crypto market. U.S. economic indicators, including unemployment claims and inflation data, are expected to play a role in shaping market sentiment.

If inflation is lower than expected, it could reduce the likelihood of aggressive rate hikes by the Federal Reserve. This scenario could increase investor interest in Bitcoin and Bitcoin spot Exchange-Traded Funds (ETFs).

However, increased unemployment claims could raise concerns about an economic recession in the United States. Such concerns could reduce demand for Bitcoin and related investment products.

Recent legal developments have also impacted the crypto landscape. The Commodity Futures Trading Commission (CFTC) announced that FTX and Alameda must pay $12.7 billion to their creditors. This news sent ripples through the financial markets, with some speculation that these creditors could reinvest in cryptocurrencies.