Cryptocurrencies Edge Lower Ahead of US Inflation Data and Fed Testimony

Major cryptocurrencies were slightly down ahead of Tuesday's United States session as investors avoided large positions ahead of Federal Reserve Chair Kevin Warsh's congressional testimony, and the release of US inflation data. Bitcoin (BTC-USD) decreased 0.7% to about $62,595 in early North American morning trading on Tuesday, while ether (ETH-USD) increased 0.1% to $1,787. Ripple's XRP (XRP-USD), the sixth-largest crypto by market cap, traded around $1.06, down 1%, while Binance Coin (BNB-USD), the fourth-largest cryptocurrency by market cap, rose by 0.1% to trade at $569. The global cryptocurrency market capitalization decreased 0.84% to $2.15 trillion. "Today's US CPI report and Fed Chair Kevin Warsh's congressional testimony have the potential to drive volatility well beyond traditional markets," wrote LMAX Digital analysts in a Tuesday note, adding that crypto "remains highly sensitive to major macro catalysts in the short run." In Tuesday's premarket activity, spot Bitcoin exchange-traded funds were up, led by ARK 21Shares Bitcoin ETF (ARKB), up 0.8%, and Bitwise Bitcoin ETF (BITB), up 0.7%. The 13 ETFs logged total net outflows of $424.7 million on Monday, SoSoValue.