2022-2-23 13:38 |
Bitcoin, Ether, XRP, SOL seemed to have shrugged off a worse-than-expected inflation report last week to rally after showing signs of capitulation for the last two or so months.
Price hikes did not let up in the last month of 2021 with inflation hitting the highest point in 39 years. According to the latest report by the U.S. Bureau of Labour Statistics, the US Consumer inflation Price Index grew by 7% in the last 12 months, the steepest rise since June 1982.
Despite this data, various government officials have warned that the rise in inflation number could persist in 2022. Fed’s Jeremy Powell has recently promised a more aggressive monetary policy that could see interest rates increased in Q1 and tapering down asset purchases in a bid to tame inflation.
However, most Americans seemed to have lost their patience and are already loading their crypto bags, and some blamed the regulator for downplaying the situation. The latest inflation data thus seems to have added a breath of fresh air into various crypto assets as more Americans seek to escape the pangs of inflation.
“You can’t beat inflation. But you won’t have to fight it when you only have crypto.” Tweeted Binance’s CZ following the CPI data release.
Ross Gelber Co-Founder & CEO, Investment Advisor of GK ETF asks, “What does 7% inflation mean to you? If you’re not earning this on your money you are losing. Hence alternatives like stocks and bitcoin.” According to him, “If you keep your money in the bank earning nothing, you’re losing without even being in the game. Money in the bank is a guaranteed loser.”
Bitcoin, which is seen as leading in the recovery, has been on the rise since the start of this week, perhaps a clear picture that traders were already loading up in anticipation of worse inflation data. $40,000 is also considered a possible inflection point for the resumption of a bullish cycle, which informs the current surge. At reporting time, Bitcoin is trading in the $38,886 range after gaining over 8% since Monday.
Ethereum and XRP seem to have also recovered after creating a spinning bottom earlier in the week, with the current inflation data further fuelling its rise. Ether’s daily Relative Strength Index RSI has also managed to rise out of the oversold region, signaling incoming strength that could propel the price higher from its current $2,711 level.
Other cryptocurrencies continue to exhibit strength with most of them gaining over 5% in the last 48 hours.
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