New data showed that inflation might have peaked last month (July).
The cryptocurrency world witnessed upside moves today following the latest data that shows inflation might have started to peak. The past 24 hours saw the world’s leading crypto, Bitcoin, gaining more than 5%, changing hands at $24,347.4 during this publication.
That triggered uptrends in the altcoin market, with the second-largest crypto surging more than 9% during the day. Also, BTC miner CleanSpark (CLSK) saw its shares gain approximately 15%.
Investors have waited for the latest US consumer price index throughout the week. The CPI measures the prices of daily consumer services and goods. Meanwhile, today’s data suggested that the metric gained 8.5% in July Y/Y.
Moreover, the CPI remained unaltered since June (on a seasonally attuned basis). Meanwhile, these figures were below expectations, potentially showing that inflation might have peaked in July.
The decline emerged after a 4.6% energy price drop in June. The energy sectors saw fuel prices decline by 11% while gasoline prices lost 7.7%Also, transportation services lost 0.5% from June while the shelter metric gained 0.5%, though a smaller growth pace than within the previous two months. Moreover, utility gas services noted a 3l6% drop in July.
The better-than-anticipated inflation data might mean that the Fed’s hawkishness in 2022 is working to curb inflation. And that could see the Federal easing rate increases as the year advances.
Remember, rate hikes have deteriorated the crypto market in 2022, with BTC and ETH dropping around 50% and 51%, respectively. Increasing rates heighten safer asset yields while pressuring growth & risk assets.
In other updates, CleanSpark announced Q2 financial results last night, and the numbers were worse than anticipated.
However, executive Zach Bradford stated that the firm continued to expand through mining more BTCs and substantially improving hashrate/computing power. Moreover, CleanSpark revealed strategies to buy new mining facilities and sell assets of its traditional business.
Today remains a lucrative day for the crypto space as there’s eventually optimistic inflation news, meaning the Fed could slow its aggressive hikes. Bitcoin and Ethereum boast massive long-term potential, and CleanSpark’s latest update could mean the firm is on the right path.
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