As criticism from the U.S. government’s prospective sale of Bitcoin confiscated from a Silk Road robbery increased, the price of Bitcoin fell during the early hours of Thursday dealing in Asia to under US$30,500. In addition to losing money, the majority of the top 10 non-stablecoin cryptocurrencies, including Ether, did as well. Polygon’s Matic was the worst performer. After statistics revealed that inflation in the US slowed in June, U.S. equities futures increased. Analysts increased their anticipation of a further interest rate increase in July, nevertheless.
As of 07:20 a.m. from Hong Kong, Bitcoin had decreased 0.81% during the previous 24 hours to US$30,375, representing a weekly decline of 0.35%. On Wednesday night in Asia, the most valuable digital currency in the entire globe reached a high of US$30,959 following the announcement of the U.S. consumer price index (CPI).
The Result of Price Crashes
According to information from CoinMarketCap, it immediately dropped below US$30,500. On July 12, a flurry of payments involving over 9,800 Bitcoin valued around $300 million were made from accounts associated with the U.S. Department of Justice (DOJ) to unused locations. As with other significant transactions in the past, the action most certainly put more pressure on the token. Around 50,000 Bitcoins taken from the Silk Road darknet bazaar were seized by the DOJ in 2021. It is unknown if the U.S. authorities will sell the Bitcoin it confiscated following its movement between wallets on Wednesday.
Ether lost 2.15% for the past seven days as it fell 0.43% to US$1,870. The token increased Wednesday night, temporarily breaking through the US$1,900 barrier mark, much like Bitcoin. But it quickly turned back. The majority of the top 10 non-stablecoin cryptocurrencies experienced losses over the previous day. The TRX token from Tron was the single exception, rising 1.05% for the duration of the week and 0.51% to US$0.0777. The U.S. pace of inflation may have slowed down, according to the CPI statistics released on Wednesday, but the Federal Reserve’s easing of monetary measures may not have changed as a result.
Justin d’Anethan, head of APAC expansion at crypto trading platform Keyrock in Belgium, claims that the fresh data is in line with forecasts but still falls short of the Fed’s goal of keeping inflation within 2%. Therefore, it is insufficient to improve sentiment in the cryptocurrency market. The US released its core inflation statistics, which most traders anxiously anticipated, but which, for some reason, failed to elicit a big reaction, according to d’Anethan.
Matic experienced a rally of more than 15% in the last two weeks despite the most recent fall. The increase indicates confidence among investors in the Polygon 2.0 change, which the business claims would enhance network functionality and usher in “greater community oversight of the protocol and treasury.
In September, analysts see a 12.9% chance—down from 23.3% on Wednesday—of another 25-basis-point rate increase. Expectations for additional rate increases in the months of November and December decreased as well. The government’s crackdown on the IT sector may be coming to an end as a result of their desire to communicate with the leaders of the business.
The Labor Department’s release of the U.S. CPI report on Wednesday helped investors. It demonstrated that in June, the overall inflation rate dropped to 3.0%. From March 2021, the data showed the smallest annual rise. According to Reuters, the result was less than the 3.1% estimate of analysts. Nigel Green, CEO of independent financial services firm deVere Group, asserts that the Federal Reserve may still raise interest rates in July despite the less-than-expected inflation figures.
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