With U.S CPI data pushing markets off the ledge, here’s what investors need to know
Recent developments in the market have reduced the pain tolerance of crypto investors that were already reeling from the May crash. What does the future of crypto assets look like now as global indexes begin to tremble further?
The crypto market has taken a huge hit since 11 June. Bitcoin [BTC] is currently down by 6% and below $27,500, Ethereum [ETH] is worse-off with a 12% hit and below $1,500. But that is not all as most of the major altcoins are also losing ground today.
As per a recent Santiment study, the average returns of traders have fallen into negative territory again after the May debacle. Santiment used the MVRV-30 day metric on major cryptos and the results were terrifying with only ADA having neutral returns. Bitcoin and Binance Coin are negative and stuck in the semi-opportunity zone. Ethereum, on the other hand, is back in the opportunity zone again after dropping as low as its February 2021 price.
Source: Santiment
The recent slaughter in the equities market is being directed to a recent CPI data released by the US. According to data published by the U.S Bureau of Labour Statistics, the consumer price index increased by 1% in May. This puts the annual inflation rate in the United States at a 41-year high of 8.6%. According to a Wall Street Journal survey, economists had the May CPI forecasted at 8.3%, marking a significant misestimation of 30 basis points.
The inflation report had a huge bearing on the risk-asset industries, ultimately correcting the crypto industry. According to another Santiment tweet, inflation and debt concerns were trending across social media as major altcoins hit local bottoms. Interestingly, the previous three spikes in this subject’s interest all hit local bottoms.
Source: Santiment
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