Cryptocurrencies struggle but flow revival offers hope

Cryptocurrencies come under pressure

“A late rally for cryptocurrencies last week has failed to push on into the new week, a reflection of broader risk-off concerns in global markets. Cryptocurrency markets rely on momentum, to a bigger extent than most others, and should the bullish push of the last two weeks begin to fade then a re-run of May’s selloff looms. A full-blown resumption of hostilities in the Middle East wouldn’t help matters for the asset class, which continues to struggle to hold investor attention thanks to the focus on chip stocks and the recent run of high profile IPOs.”

What we’re watching – US earnings & inflation data

“This week is jam-packed with high-profile events that are likely to leave cryptocurrencies in the background. US earnings season now becomes the drumbeat for global markets, while the dollar’s fate now hinges on tomorrow’s inflation data. At least cryptocurrency inflows appear to be reviving, the turmoil in high-flying chip stocks dimming their attractiveness for the time being and leaving investors looking for an alternative. As one of the laggards for the year, cryptocurrencies seem to offer an area where positive outlooks are few and far between."