Bitcoin, Ethereum, and major altcoins gain after the US CPI
Bitcoin, Ethereum, and many other cryptocurrencies rose on Wednesday after investors ignored the seemingly US regulatory crackdown and inflation data. Cardano posted the largest increase, but many other cryptocurrencies are still in a bearish phase compared to February’s weekly performance.
Bitcoin is still down more than 4% in the past week, and Ethereum is down more than 6% this week. Cardano raised 7%, but it is down 0.7% in the last 24 hours. It declined 7.2% in the past week. The news of the successful deployment of the Valentine upgrade prepares the sentiment for Cardano. This update is suitable for the developers, which helps them to build cross-chain apps on this blockchain platform.
On the other side, Polygon is up more than 6% in the last 48 hours, but it is still down around 1% on the weekly chart. Solana is down around 5% in the last seven days.
The market has been volatile because US regulatory authority focused on crypto services. However, the CPI data reported a 0.5% rise in January from the last month, which is moderately higher than the economists’ forecast.
According to US Labor Department data, the YoY increase is around 6.5%. It is also higher than the prediction of 6.2% of inflation. The good news is that inflation has been declining in the last few months, which benefits the stock market and cryptocurrencies. Will crypto assets sustain the recent hike? Read our crypto price predictions for the short and long-term projections with detailed analysis.
FED has hiked the interest rate from last March to reverse the inflation back to 2%. Market experts predict another hike of 25bps in next month’s meeting. Currently, it is the highest in 15 years, around 4.5%, but FED officials predicted they could hike the rate up to 5% to get inflation back on track.