The crypto market has had a rough go in the past few months. Most cryptocurrencies have lost more than 50% of their value, and the crypto market as a whole lost billions of dollars in value. Bitcoin, which had dropped in price from $69,000 in November to around $20,000 in June, dropped by 3.5% last week to trade at $20,831 by the end of the week.
Ethereum, which was also down by almost 50% by June and traded for as low as $900, was up by 11.1% to trade at $1,357. Polygon went up by a whopping 19.46% to trade at $0.70, Uniswap was up by 11.6% to $7.07 and Monero went up by $10.5% to $139.39.
However, like Bitcoin, not every cryptocurrency saw its fortunes turn. Dogecoin went down by 9.5% to trade at $0.06, Cardano fell by 8% to $0.44 and NEAR Protocol dropped by 8% to $3.44. The crypto market was also dealt a heavy blow when the U.S. Bureau of Labor Statistics released its inflation report and revealed that the Consumer Price Index (CPI) had risen by 9.1% in the past 12 months.
This was the biggest 12-month increase the country has seen in the last 40 years, with the most significant price jumps being concentrated in gasoline, food and shelter. For the past few months, the cost of living has been on the rise due to factors such as trade barriers, supply chain constraints and widespread shortages, forcing the Fed to take an increasingly hawkish stance to prevent inflation.
In June, the Fed raised the benchmark interest rate by a whopping 0.75 basis points, the highest raise since 1994. With the CPI indicating even higher costs of living, the Fed may hike interest rates even higher to arrest inflation by increasing the cost of borrowing.
The recent CPI report led to selloffs of cryptos and stocks as investors got rid of assets they saw as riskier. Bitcoin dropped by 4%, and Ethereum fell by more than 6% soon after the consumer price index data was released. Data from Bloomberg shows that the Bitcoin-to-Nasdaq correlation has approached its lowest point, meaning that Bitcoin was able to resist more downward pressure in the last week compared to other stocks.
Ethereum’s recent price increases have been due to increased investor anticipation as the Ethereum network approaches the switch to proof-of-stake.
Elsewhere, Russian president Vladimir Putin signed a ban on the use of digital assets as a mode of payment. However, residents are still able to buy as well as hold digital assets under this new law.
These news items notwithstanding, plenty of companies, including BlockQuarry Corp. (OTC: BLQC), are hard at work coming up with different ways through which blockchain can serve ordinary individuals. The future remains bright for this new technology, especially for cryptocurrencies, despite the recent hiccups,.
NOTE TO INVESTORS: The latest news and updates relating to BlockQuarry Corp. (OTC: BLQC) are available in the company’s newsroom at http://ibn.fm/BLQC
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