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Bitcoin takes a hit amid stronger-than-expected inflation figures |
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September CPI increased by 0.2%, above forecasts. Year-over-year CPI rose 2.4%, slightly exceeding expectations.
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News - The Consumer Price Index (CPI) for September revealed a greater-than-anticipated increase, according to the latest report from the U.S. government. The CPI rose by 0.2%, surpassing the forecast of 0.1% and matching August's increase. |
Year-over-year, the CPI climbed 2.4%, slightly above the expected 2.3% and just below August's 2.5% figure. |
Core CPI, which excludes volatile categories like food and energy, saw a 0.3% rise, exceeding predictions of 0.2% and matching August's increase. Annually, the core CPI rose by 3.3%, beating expectations of 3.2%. |
Impact on crypto sector - In response to the inflation data, Bitcoin experienced a decline, trading around $60,800, down nearly 2% in a day. |
Following an unexpected 50 basis point rate cut by the Federal Reserve in September, investor optimism surged, but recent hawkish comments from Fed Chair Jay Powell have dampened those expectations. |
As of now, the likelihood of another 50 basis point cut in November has dropped to zero, with markets indicating a 26% chance that rates might remain unchanged. |
Argentina surpasses Brazil as the leading crypto market in Latin America |
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News - Argentina has emerged as the leading cryptocurrency market in Latin America, overtaking Brazil in terms of estimated crypto inflows. |
According to a new report by Chainalysis, Argentinians deposited a staggering $91 billion in cryptocurrencies between July 2023 and June 2024. |
What's the reason behind this surge? The surge in crypto adoption in Argentina can be attributed to the country's long-standing economic challenges, including high inflation and currency devaluation. |
Argentinians have turned to cryptocurrencies, particularly stablecoins, as a means to protect their wealth and hedge against financial instability. |
Chainalysis found that Argentina's share of stablecoin transaction volume is among the highest in the world, surpassing the global average. |
In conclusion - Despite the increasing adoption of cryptocurrencies, Argentina has yet to establish a comprehensive regulatory framework for the industry. While the government has made efforts to introduce regulations, progress has been slow. |
South Korea allows cryptocurrency division in divorce settlements |
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News - A landmark decision by South Korea's Supreme Court has paved the way for the equitable division of cryptocurrency holdings during divorce proceedings. |
The court ruled that cryptocurrencies are considered property and can be divided between spouses as part of the marital estate. |
The court's decision highlights the growing recognition of cryptocurrencies as a valuable asset class. As the crypto market continues to evolve, it is essential for couples to understand the legal implications of their cryptocurrency investments, especially in the context of divorce. |
To facilitate the division of cryptocurrency holdings, courts can order a "fact-finding investigation" to determine the value of a spouse's crypto assets. |
Couples have the option to either cash out their crypto holdings before dividing them or share the tokens directly. The choice will depend on various factors, including market conditions and personal preferences. |
Hedge funds embrace crypto amid growing regulatory clarity |
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News - The number of hedge funds investing in cryptocurrencies has surged in recent years, driven by increased regulatory clarity and the potential for higher returns. |
A survey conducted by the Alternative Investment Management Association (AIMA) and PwC revealed that nearly half of traditional hedge fund managers now have exposure to digital assets. |
Important findings - The survey found that 47% of hedge fund managers trading in traditional markets have invested in cryptocurrencies, up from 29% in 2023. |
This significant increase reflects growing confidence in the crypto market, particularly as regulators around the world provide more clarity on spot Bitcoin and Ether exchange-traded funds (ETFs). |
What's more? Hedge funds are increasingly attracted to cryptocurrencies due to the potential for higher returns compared to traditional asset classes. The growing acceptance of cryptocurrencies among hedge funds is evident in their investment strategies. |
Despite the increasing interest in crypto, a significant portion of hedge funds remain hesitant to invest. Only 24% of those with no crypto exposure plan to adopt digital assets in the near future. The lack of familiarity with cryptocurrencies and concerns about market volatility are likely contributing factors. |
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More stories from the crypto ecosystem |
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Did you know? |
Anyone can create a crypto coin, and the names can get as bizarre as you like. Some punniest names in the crypto sphere include Garlicoin, for the love for garlic bread, Coinye after the myth and legend himself, Kanye West, and DeepOnion, the creepy crypto that facilitates payments on the Tor browser. The market cap of the total cryptocurrencies is more than the GDP of most countries. To put things into perspective, the current crypto market cap is over $2 trillion. However, only 12 countries in the world have a GDP of more than $1.5 trillion, as per the World Bank. Gamers seem to be spearheading the crypto adoption process. As of 2023, 44% of gamers have either bought cryptos or have partaken in Web3 games. Blockchain users worldwide can now create and sell games and in-game items on dApps, which can change the gaming industry as we know it.
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Top 3 coins of the day |
Shiba Inu (SHIB) |
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SHIB saw its value increase by around 5% in the last week. At press time, however, bears had the upper hand.
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What you should know - Shiba Inu has recently shown an upward trend within a rising channel, with support and resistance levels marked by the channel's boundaries. The price is currently near $0.00001680, showing a pullback after testing resistance around $0.00002200. The Relative Strength Index is hovering around 48, suggesting neutral momentum. The Awesome Oscillator is positive but shows declining bars, hinting at a potential slowdown in momentum. If SHIB maintains support at the lower channel boundary near $0.00001400, it may resume its upward trajectory, targeting the resistance level again. However, a breakdown below this support could lead to further declines, with the next support level around $0.00001200. |
Uniswap (UNI) |
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UNI saw a 22% increase in the last seven days. Bulls were trying to reach $9 resistance, at press time.
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What you should know - Uniswap has been trending upwards within a rising channel, recently breaking above the $7.8 level with strong momentum. The price surge is supported by a significant increase in volume, suggesting heightened buying interest. The Chaikin Money Flow indicator is positive, indicating that capital inflows are outpacing outflows, which reinforces the current bullish sentiment. The recent breakout towards the upper boundary of the channel suggests that UNI could challenge the next resistance around $9. However, if the price faces rejection at this level, a pullback to the $7.00 support line within the channel is possible. The rising 20-day EMA around $7.27 provides additional support, further strengthening the case for a continued uptrend. |
Monero (XMR) |
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What you should know - Monero has recently rebounded from the support zone around $130, an area with good liquidity, and is now trading near $152. The price is moving towards the resistance zone around $180, which has previously acted as a strong barrier. The MACD indicator shows bullish momentum building, as the MACD line is crossing above the signal line. This suggests potential for further upside, although the overall volume is moderate, indicating cautious optimism among traders. If XMR can sustain this momentum, a break above $180 could open the door to a rally, targeting levels around $200. However, if the price faces rejection at resistance, it could fall back towards the $130 support zone. |
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