Expert outlines the best crypto -element to HODL during the crypto winter
The crypto market has seen its most extensive greens after a long time with the Bearish trend in the market. The event followed the positive report on KPI (consumer price index) given by the US Bureau of Labor Statistics in July. This announcement was the biggest pressure on the prices of Bitcoin and Ethereum.
July CPI fell lower than the expected 8.5%, according to previous reports. However, this does not appear to contribute positively to potential inflation. In this effect, experts now express concern about what they consider to be sticky inflation.
The CEO of Enduring Investments LLC, Michael Ashton, has revealed what he believed was the cause of the reduced CPI.
According to Ashton, the important factors that contributed to the reduced CPIs were flexible objects. He stated that some examples of such flexible objects are clothes and air tickets.
However, this will not affect any sticky areas in the economy, he added. For example, the prices of certain sticky economic parts, such as rent, will continue to increase regardless of reduced CPI.
He further stated that there would be a continuous acceleration in the sticky inflation index. Besides, there is no promise that the increase in inflation in the US economy will stop soon, he added.
Inflation effect on crypto -elements
Currently, there is a strong meeting in the digital currency industry. This is an effect of the positive CPI (Consumer Price Index) report.
In addition, many Altcoins, including Bitcoin and Ethereum, have hit a new height after a long period of Bearish price movements. Bitcoin is currently at a price lower than $ 24,000.
Meanwhile, Ethereum is under $ 1,900. This is a result of a solid marketing center in the industry.
Overview of the US Bureau of Labor Statistics Data
The consumer price index is an effective indicator that provides accurate information on the state of inflation in the US economy. The US Department responsible for the KPI reports is the US Bureau of Labor Statistics. Usually, this department provides reports of CPI every month.
Meanwhile, the department that controls high inflation in the country is the Federal Reserve. This group achieves its goals through interest rates and quantitative tightening.
June reports quoted the fall in Cryptocururrency and a severe aggressive Fed due to over-session CPI. This also brought BTC to one of the worst states at that time. In addition, the stock markets were not left out during this period, as many shares fell to different prices.
So it is not recommended to invest in digital currencies at the moment, warns Ashton crypto investors. This is due to the uncertainty in the inflation fuses.
On this occasion, he advised investors to choose specific assets. He quoted examples of real assets: real estate, agriculture, precious metal and energy.
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