BTC, ETH and other popular crypto coins rose amid the slowdown in inflation in the US
Almost all digital currencies from the top 10 have shown growth over the past 24 hours. According to Coinmarketcap, bitcoin has risen in price by 6%, breaking the $24,500 mark.
Ethereum added more than 11%, the price of the coin is approximately at the level of $1,800. The growth of the crypto asset occurred against the backdrop of yesterday’s successful transition of the last test network of the Goerli project to PoS.
Other digital currencies, such as Solana, have risen in price by 10%, reaching $44 on July 11. Analysts believe that the local positive trend in the market is associated with information about the slowdown in inflation in the US in July.
The consumer price index, which was released on August 10, showed that inflation in the US in the previous month reached an annualized rate of 8.5%. This is less than the June level of 9.1%, which was the highest monthly increase in the last 40 years.
“A softer-than-expected inflation report could help reduce the headwind of rising U.S. interest rates for Ethereum and other crypto assets,” said Matt Weller, head of global Forex research.
According to the expert, the Fed wants to see “a steady downward trend in inflation before even considering a turn to lower interest rates.”
Aaron Chomsky, head of the investment department at ICB Fund, considers it unlikely that digital assets will be able to gain a foothold on the growth trajectory. The reason is the chaotic behavior of the stock markets against the backdrop of tightening the Fed’s policy.
“Still, the records of 2021 were due to the “printing press” of the American Central Bank, and now the money supply is actually being withdrawn from the financial system. But this process at a certain stage will again go back after the victory over inflation is won. It cannot be otherwise, since this is how the architecture of world finance is arranged,” he wrote in his column.
What do you think, will the thaw last in the cryptocurrency market? Or should industry participants get ready for another rally in the near future?
