October 1, 2022

Cryptocurrency: These Coins Are Rising Today – Bitcoin And Ethereum

Shares of most cryptocurrencies and cryptocurrency stocks moved higher today. This happened after new data showed that inflation might be starting to peak.

Over the last 24 hours, the price of bitcoin traded 4.7% higher as of 10:10a.m. ET today. Ethereum was not left out of the action as it traded 8.7% higher. On the day, shares of the Bitcoin miner CleanSpark traded almost 15% higher.

What This Means For The Cryptocurrency Industry 

All week investors have been waiting for the latest reading of the customers price index (CPI). this tracks the prices of a range of daily customer goods and services. 

This morning, the data showed the index grew 8.5% in July on a year-over-year basis. What’s more, the CPI remained unchanged from June on a seasonally adjusted basis. Both of those numbers came in below expectations and suggested that inflation could have peaked last month. 

The decline was led by a 4.6% drop in energy prices from June. within energy, fuel prices fell 11% and all gasoline prices dropped 7.7%. 

Transportation services also dropped half a percent from June. In addition to that, the shelter index rose half a percent but at smaller pace of growth than over the last two months. Furthermore, energy services only grew 0.1% from June after a 3.5% rise in June. within this category, utility gas services fell by 3.6% in July.

The better-than-expected inflation report could mean that the Federal Reserve’s hawkish policy so far this year is working to tame inflation. This could potentially let the fed ease up on interest rate hikes as the year progresses. Rate hikes have crushed crypto prices this year with Bitcoin and Ethereum down roughly 50% and 51.4%, respectively. Rising rates make safer assets yield more and put pressure on growth and risk assets.

In other news, CleanSpark reported second-quarter earnings  last night that came in worse than expected. But, CEO Zach Bradford said in a statement from the company “continued to grow by mining a record number of bitcoin and substantially increasing our hashrate,” or its computing power. 

Furthermore, CleanSpark announced that it plans to sell the assets of its more traditional energy business and purchase another facility for Bitcoin mining. 

Bitcoin And Ethereum Jump On Inflation

The cryptocurrency market perked up on Wednesday morning following news that inflation cooled off last month. With decline gas prices and airfares, the Customer Price Index (CPI) rose 0%, has remained that way from June to July. The CPI, however, jumped 8.5% over the past year. Though that’s still high, it’s better than expected, and provides a bit of relief for investors.

In addition to the slowed inflation, excitement surrounding the Ethereum “merge.” The merge is a highly anticipated upgrade promising to improve the network’s efficiency. It is also likely to contribute to Ether’s bullish run in the months to come. Ethereum is looking to run through a final test for the merge soon.

What To Look Forward To In the Cryptocurrency Industry

Today, is a good day for the market and crypto because there is finally some good news about inflation. This means the Fed may be able to start to slow the pace of rates hike, which have been incredibly aggressive this year.

I continue to like Bitcoin and Ethereum on a long-term basis. I  also believe that CleanSpark is headed in the right direction after its latest update.

Augustine Ojeh

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