Investors across the globe and asset classes awaited the latest Consumer Price Index (CPI) data due on Friday. Inflation numbers are likely to hurt riskier assets as sell-off pressure lingers on the digital token market.
Majority of the crypto tokens were trading flat, with minor changes, on Friday. Avalanche dropped 3 per cent, whereas Dogecoin and Cardano also traded in the red. On the other hand, Solana jumped 5 per cent, followed by a 4 per cent rise in Polkadot.
The global cryptocurrency market cap was trading flat at the $1.24 trillion mark, with no material change in the last 24 hours. However, the total cryptocurrency trading volume plunged about 7 per cent to $61.86 billion.
Cryptocurrency prices have been in a slump this year as the Federal Reserve withdraws stimulus and hikes rates to combat inflation.
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Chief Economic Adviser V Anantha Nageswaran said cryptocurrencies are akin to ‘a world of Caribbean pirates’ in the absence of a centralised regulatory authority and is yet to pass the test of a fiat currency.
He said that the government is pursuing a ‘high-wire balancing act’ to ensure that the gains in growth, inflation, and rupee stability of the last four years are not frittered away.
Edul Patel, CEO and Co-founder of Mudrex said Bitcoin has lost nearly 12 per cent in value over the last month and is down more than 35% from its all-time high.
Most cryptocurrencies have also dipped a bit when compared to the previous day. Crypto prices have declined this year with the Federal Reserve hiking rates to combat inflation, he added.
Bitcoin continues to hold $30,000-level as investors await key inflation data, which will hint about what the Federal Reserve may do in September, said Kunal Jagdale, Founder, BitsAir Exchange.
“Inflation numbers are hot and will remain hot in the new update. Rate hike expectations are likely to climb after the new report. Crypto market suffers a sell-of risk ahead over the outbreak of bad news,” he added.
South Korean law enforcement agencies are investigating Do Kwon’s Terraform Labs, following last month’s collapse of its controversial algorithmic stablecoin, terraUSD (UST), according to a report by the Financial Times.
Ethereum scaling tool Optimism announced Wednesday that attackers stole $15 million in OP governance tokens. Optimism intended to send the funds to a crypto market maker.
Bamboo believes its user-friendly, micro-investment and savings application (app) is a way to make crypto investment easier and less scary for consumers.
Global brokerage company BGC Partners (BGCP) plans to build a cryptocurrency exchange and launch it by the end of this year or the first quarter of 2023, CEO Howard Lutnick said during Piper Sandler’s Global Exchange & Brokerage Conference.
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Solana has recently announced its $100 million funds to support web3 projects in South Korea which will be deployed for developing gaming and NFTs and Defi projects.
The announcement has strengthened Solana’s position in the altcoin ecosystem. Solana is hovering around the $40 mark which is almost 85% down from its peak.
Solana will easily take 2-3 years to retest its all-time high but the growth momentum will depend on the macroeconomic factors surrounding the crypto markets. The inflation numbers will also impact the growth of crypto markets around the globe in the coming weeks.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)