Cryptos See A Sea Of Red As U.S. Reading Shows Red-hot Inflation
By RTTNews Staff Writer | Published: 2/11/2022 7:01 AM ET
Crypto prices have fallen around 4 percent in the past 24 hours as investors take cognizance of the latest readings on consumer price inflation in the U.S. Annual CPI in the U.S. spiked more than expected, to 7.5 percent, the highest reading since 1982. Robust consumer demand and pandemic-driven supply constraints had pushed prices higher in January. The highest contribution was from the energy prices.
Global markets continue to bear the brunt of the brutal rise in inflation. Asian stock markets finished mostly down. European stock markets are also in deep negative territory. Gold is trading half a percent down at $1827.
Dollar Index has surged more than a quarter percent to 95.87. Government bonds have cooled off slightly after peaking to multi-year highs in Thursday’s trade. All eyes would be on the FOMC scheduled in the middle of March, for cues on the pace of interest rate lift off that the Fed deems necessary to combat the red-hot inflation.
Crypto market capitalization is at $1.97 trillion. Except for stablecoins, it is indeed a sea of red in the crypto market place.
Bitcoin is trading 3.6 percent lower at $43,469.96. With a market capitalization of $824 billion, BTC dominates 41.7 percent of the market. Ethereum is trading with a loss of 5.1 percent and its current price is $3,103.16. The $371 billion market capitalization has allowed Ethereum to command 18.8 percent dominance.
Fourth ranked BNB is trading at $416.94, shedding more than 2 percent overnight.
After a splendid rally in the past week, XRP is down more than 8 percent.
Cardano is down 4.9 percent overnight but is still 9.1 percent higher in the past week.
Solana, Polkadot, Shiba Inu, and Polygon too have fallen heavily, by more than 7 percent overnight.
In the category-wise market capitalization dominance, Smart Contracts aggregate to 28.4 percent; Stablecoins account for 9.05 percent; DeFi is at 7.15 percent; Centralized Exchanges add up to 5.15 percent; Web 3 sums up to 3.02 percent; Research grosses 2.60 percent; NFTs account for 2.43 percent; Memes command 1.94 percent; Scaling enjoys 1.63 percent; Metaverse commands 1.58 percent; Gaming amount to 1.47 percent; while Decentralized Exchanges follows with 1.41 percent market capitalization.
Meanwhile, comments attributed to the Indian Finance Minister indicate that by taxing cryptos India has not legalized cryptocurrencies. India had recently proposed a 30 percent tax on profits from cryptocurrencies.
Recently, Russia had indicated intentions to regulate crypto through licensing for exchanges and taxation, rather than going for a ban as proposed by the Bank of Russia.
In another development, the European Union’s finance chief has said that a Digital Euro Bill would be rolled out by early 2023.
As markets transition into and traverse the tight monetary policy regime, there is a bound to be a flight to safety, a flight to earnings and a flight to liquidity. If cryptos can offer these on a consistent basis, then the ride ahead would be less turbulent.
For comments and feedback contact: email@example.com
Article written by an RTT News Staff Writer, and posted on the RTT News.com website.
Article reposted on Markethive by Jeffrey Sloe