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Bitcoin and Altcoins Spike as US Inflation Drops

The consumer price index report published by the Department of Labor shows that United States inflation dropped to 8.5% in July marking a sharper fall from 9.1% the past year.

The post Bitcoin and Altcoins Spike as US Inflation Drops appeared first on BeInCrypto.

The consumer price index report published by the Department of Labor shows that United States inflation dropped to 8.5% in July marking a sharper fall from 9.1% the past year.

This revelation has caught many by surprise in the Biden Administration, who had anticipated that the inflation was savoring due to several factors like the price increase and the Ukraine-Russian war.

“Today we received the news that our economy had zero percent inflation in the month of July. Zero percent.” Biden said at the White House

Crypto jumps higher

Bitcoin and other major cryptocurrencies, which have been in free fall for the greater months of 2022 due to macro concerns and the geopolitical climate, are rebounding strongly.

Most cryptocurrencies across the board declined on July 9 in expectation of the report, with bitcoin dropping about 4% to $23,100 after rising above $24,000 on Monday while Ethereum (ETH) fell by over 5%. Prices have bounced back, however, with bitcoin trading above $24,500 and Ethereum trading slightly below $1,900 at the time of press.

Biden aims to lower inflation

Reacting to the report, President Joe Biden emphasized that the current approach to curbing inflation was working and that Congress must pass the Inflation Reduction Act.

“The economic plan is working, and second is building an economy that will reward work,” Biden said in a press conference at the White House.

While inflation has been accelerating, it is reported that gross domestic product declined for the first two quarters of 2022 revealing that the economy was really priced. The report highlights that energy costs slowed for the month of July, falling 4.6%, despite maintaining a climbing curve in 2021 at 32.9%. Gasoline prices dropped by 7.7% month over month, providing some relief for drivers, but they were still 44% higher than the year before.

Food expenses continued to bump up, increasing by 1.1% over the month and rising 10.9% on a year-over-year basis, the largest increase since May 1979 according to pundits.

The data has attracted mixed reactions from those sensitive to inflation and monetary policy trends. The prospect of U.S. interest rates not rising as high as previously thought also pushed down the dollar, which fell more than 1% against a basket of currencies of major trading partners according to the New York Times.

The post Bitcoin and Altcoins Spike as US Inflation Drops appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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Altcoins

Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares

Crypto funds saw a third straight week of inbound investments last week. However, CoinShares’…

The post Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares appeared first on CoinJournal.

  • Crypto funds saw a third straight week of inbound investments last week. However, CoinShares’ James Butterfill says the low inflows suggest there’s “continued investor hesitancy.”

The crypto market has struggled to tag a positive sentiment, with September again proving a tricky month for bulls as prices remained largely within a long term downtrend going back to November 2021.

So while institutional investors continue to size up opportunities in the digital assets sector, flows into investment products have significantly remained low over the past few weeks.

James Butterfill, Head of Research at digital asset manager CoinShares, says the low inflows seen last week imply a “continued hesitancy” from investors.

Butterfill shared the outlook in the latest edition of the “Digital Asset Fund Flows Weekly Report”, which CoinShares published on Monday.

Crypto funds see third week of inflows

Fund outflows year-to-date are at more than $42 million, with the past three weeks seeing positive flows.

According to Butterfill, the low flows suggest institutional investors are still weighing up the market, particularly given the global macroeconomic environment.

Digital asset investment products saw inflows totaling $10.3 million last week representing the third week of inflows. The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were $886 million for the week, the lowest since October 2020,” Butterfill wrote.

Bitcoin recorded minor inflows for a third week in a row, with $7.7 million (short bitcoin saw inflows of $2.1 million). Meanwhile, Ethereum registered $5.6 million in inflows last week to post a second positive week – but short Ethereum products hit outflows of $0.9 million.

Across the altcoin market, negative sentiment saw investors pull $3.5 million. Top outflows were in Polygon, Cardano and Avalanche.

The post Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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