Inflation Increases Highest Since 1981

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2022-06-30 17:10:43

Inflation was higher than expected and the market fell

BTC and crypto rebound slightly above $40,000. Altcoins recover slightly and the market is greener.

Stocks are all in the red, falling in all three indexes. The stock futures market was better and rose slightly. Oil rose to more than 100 USD/barrel. And gold kept at 1974 USD/ounce.

Tuesday’s inflation data showed consumer prices CPI rose 8.5% in March year-over-year – the highest level since 1981 – adding to concerns about tighter monetary policy from the Fed. .

CPI is just a relative number, some people don’t believe it, but it still shows a part of the change of inflation. The overall CPI is low, while in some specific industries it is very high. But in the energy sector, the CPI is up to more than 32%, the food is 8.8%,…

When inflation is high and the Fed raises interest rates it affects all sectors. As shared by CryptoCrunch about how people react when inflation is high.

When inflation is at 13%, people will limit eating out and directly affect the related food and restaurant industries. People will reduce driving when inflation reaches 15%. At higher levels, people may cancel monthly payment services such as membership packages, reduce the use of luxury goods, reduce travel,… It is the above effects, the Fed forced to raise interest rates to reduce inflation or sell bonds, etc.

Although US inflation is high, the dollar index (DXY) is increasing. This is an index that compares the value of the USD with some other major currencies such as EUR (54%), JPY, CAD,… This shows not only the USD but also the currencies of other countries in the region. This index is even higher inflation.

On-chain analysis

The market fell, causing the percentage of BTC profitable to drop to 67%.

A share on Crypto said that, from September 2021 to now, the number of BTC on Binance has increased. However, recently the amount of BTC on this exchange has decreased and is said to be bought by long-term investors.

Another share said that the white line is in the Hold area and the short-term trend is unclear.

Another argument shared shows that the loss rate of short-term investors is at a high level. The selling force in the market came from short-term investors. When the red line rises to the blue horizontal line, this person thinks that the price will have a strong upward trend, there is data from many times before.

The above are some short-term views on BTC price and are difficult to predict. However, in the long term, Thuan has always believed that the big trend of BTC is growth.

Some other information:

  • Cryptocurrency lender Celsius has announced that it will stop accepting new remittances for interest from unaccredited investors on its US platform starting April 15. Before that, the BlockFi company had to apply the same to their customers. These are SEC investigations targeting companies that receive crypto for profit. Because currently high inflation and low interest rates make deposit investors leave banks to more attractive deposit channels such as BlockFi, Celsius, …

  • US Treasury Secretary Yellen gave a livestream and explained about BTC, recognizing Satoshi. Yellen’s changing views are more and more open and better for BTC and crypto.

  • As Ethereum approaches its long-awaited transition to proof of stake (POS), developers have launched the mainnet’s first “shadow fork”. Its purpose is to test existing assumptions about testnests and mainnet.

  • A blog post on Robinhood’s website later confirmed the services. Tokens such as SHIB, SOL, MATIC, and COMP have been added to the trading list on Robinhood Crypto, the platform’s cryptocurrency-focused trading platform.

  • Binance announced that it is reviewing a list of 50 new tokens to list on this exchange. The list of tokens under consideration is mainly on the Ethereum and Solana networks.

  • Although Cardano (ADA) has dropped to around $1 recently, the top ADA whales have been increasing their supply, having just hit a two-year high. Cardano’s largest whales holding at least 10 million ADA (worth about $9,534,000) currently hold 46.6% of the total ADA supply.

  • The SEC’s request for a review of the due process privilege (DPP) was denied by a federal judge. The court ruling has been seen as a major advantage for Ripple in its long battle with the regulator.

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