Cryptocurrency news

US inflation is higher than expected: cryptocurrencies are changing in price

Bits.media / 12.04.2024 / 19:18
US inflation is higher than expected: cryptocurrencies are changing in price
On the eve of the halving of bitcoin, the main news for the crypto industry was the publication of fresh inflation figures in the United States. Price changes in the richest country in the world turned out to be disappointing. Cryptocurrencies, however, reacted to the statistics with restraint.

Bitcoin

Bitcoin gained slightly more than 4% from April 7 to April 12. Over the course of the week, on Monday, April 8, BTC came close to the $73,000 mark. However, it was not possible to overcome it, after which bitcoin briefly fell below $ 67,500.


Source: tradingview.com

Inflation in March in the United States not only turned out to be higher than before, but also exceeded expectations. In February, it was 3.2%, and 3.4% were expected. As a result, 3.5%. This suggests that the expected reduction of the key interest rate by the US Federal Reserve is not on the agenda yet. 

At the same time, rising inflation looks like a positive signal for crypto enthusiasts. The fact is that bitcoin is considered a protective asset that saves from inflation. However, the price of BTC on the day of the announcement of the news She reacted rather weakly, adding about 2%. 

But the report on form 13F, which is provided by US institutional investors, showed the interest of financial tycoons in spot ETFs for bitcoin. Among the leaders in investing money in cryptocurrency exchange-traded funds were AUM Park Avenue Securities, which provides brokerage and consulting services (invested $9.9 billion in GBTC), as well as an asset management company from Houston, Inscription Capital (contributed $1.3 billion). So far, the numbers remain relatively modest. However, it is worth remembering that it was only The first quarter trading similar instruments in history.

Technically, bitcoin has formed an ascending triangle, as evidenced by a series of rising lows since March 20. This is a harbinger of further growth. By and large, the rally will begin as soon as the historical maximum level of $73,794 is broken. The indicators also indicate the predominance of bulls: the price is above the 50-day moving average (indicated in yellow), the RSI is above 50.


Source: tradingview.com

Index fear and greed it remained unchanged compared to the previous week's indicator. Its value is also 79. This indicates extreme greed among bitcoin investors.

Ethereum

The ether has added about 6.5% in a week. The second largest cryptocurrency by capitalization rose above the $3,700 mark, but could not resist. Five of the seven trading sessions ended in positive territory. The most successful day was Monday, April 8, when the airwaves grew by 6.94%.


Source: tradingview.com

There seems to be enough news that would bring a wow effect. The rapid activity of Ethereum developers continues. No sooner had Dencun died down, than the next update called Electra was already being prepared. During the week, it became known about four innovations which will definitely be included in it:

EIP 6110 – should launch a mechanism within the protocol that will allow depositing immediately at the consensus level, instead of the proposal currently used for voting; EIP 7002 – triggered outputs at the execution level; EIP 7251 – increasing the maximum effective balance of validators; EIP 7549 is the movement of the committee index outside the certification, which will reduce the average number of pairs required to verify the consensus rules.

But various experts continue to express skepticism about the prospects of approving spot ETFs for ether in the United States. This week, the famous American bank JP Morgan said its "fi". There, the probability of a positive outcome was estimated as 50%. At the same time, according to one of JP Morgan analysts Nikolaos Panigirtzoglou, the refusal is likely to lead to another subpoena by the Securities and Exchange Commission (SEC) to court. As a result, the regulator will lose the lawsuit, as well as the cases against Grayscale and Ripple. This it will make you The SEC will accept the ETF on the spot ether, but later, and not in May, as enthusiasts expect.

From the point of view of technical analysis, ether remains sideways between the support level of $3,049 and the resistance level of $3,679. This is confirmed by the proximity of the price to the 50-day moving average (indicated in yellow). It is worth noting: in the long term, ether is still in an uptrend, since the 200-day moving average (indicated in orange) is much lower than the current value indicator.


Source: tradingview.com

Shiba Inu

From April 5 to April 12, the value of Shiba Inu increased by 3.84%. Trading volumes remain small relative to the indicators of the end of February-beginning of March 2024. Most of the trading sessions of the week, five out of seven, ended in positive territory.


Source: tradingview.com

Although the coin does not show any rapid growth, a number of metrics have grown. IntoTheBlock analytical Platform  results information according to which the number of addresses on the network has exceeded 4 million. Starting from March 1, 2024, this figure has increased by 200,000.

Glassnode Analytical Portal  fixed it decrease in active addresses over the same period of time. Based on these two metrics, we can conclude that users create addresses and do nothing on them.

And another cryptanalytic platform, Lunar Crush,  noted the activity of the Shiba Inu community. The indicator of social dominance increased by 46.3% in six months. The number of creators of content related to Shiba Inu also increased by 30.7%. By the way, if we talk about the price, it has increased by an impressive 266% in recent months.

From the point of view of technical analysis, a "pennant" figure has formed for Shiba Inu over the past 5.5 weeks. Where will the price go next? It will depend on which of the lines, upper or lower, it will break through. In the first case, growth should begin, in the second, a fall. The indicators indicate a high probability of the first scenario. The price exceeds the 50-day moving average (indicated in yellow), and the RSI is above 50 (albeit slightly).

 

Source: tradingview.com

Conclusion

In total, large cryptocurrencies have increased in price by 3.5%-6% over the week. This was facilitated by weak inflation figures in the United States and the growth of a number of altcoin metrics. Further growth will depend on overcoming the important technical levels described above.

This material and the information in it do not constitute an individual or other investment recommendation. The editorial board's opinion may not coincide with the opinions of the author, analytical portals and experts.

Source
Recently News

© Token Radar 2024. All Rights Reserved.
IMPORTANT DISCLAIMER: All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.