Report shows crypto assets record steady growth as inflation slows
The latest US inflation rate release for July has created a cause for celebration for many, especially the crypto sector. According to the publication from the Ministry of Labour, the consumer price index (CPI) fell to 8.5% in July. This was against last year’s value of 9.1%.
With the report’s release, many people have expressed their recommendations for the Biden administration and their shock. Some admitted that they have expected to see a rise in inflation due to some of the prevailing factors at the moment. They mentioned that the ongoing war between Ukraine and Russia and rising prices of goods were expected to play a role.
US President Joe Biden has reacted to the good news in the CPI report. In a comment from the White House, he maintained that the news shows that the economy was running at zero percent inflation for July.
President Biden further mentioned that their approach to controlling inflation is yielding positive results. He therefore urged Congress to pass the Inflation Reduction Act. This will help build an economy that will reward hard work.
In the last six months, the US reported a negative GDP value for the two quarters of the year. Inflation also rose during the period, which the high-priced economy indicates.
The report pointed out the monthly energy cost reduction which reached 4.6%. The value is contrary to 2021, which produced a climbing curve of 32.9%. On the food expenditure side, there is a continuous upward trend.
The report recorded an increase of 11% for July and an increase of 10.9% year-on-year. Pundits reported that this value stands as the highest increase since May 1979.
Gasoline prices fell by 7.7% monthly to give drivers some help. However, it remained higher than the value for 2021 by 44%.
The crypto market followed an upward trend
In a new development, the crypto market has positive progress in price and value. However, the crypto space has been in shambles due to the impact of the crypto winter and other combining factors.
In addition, the geopolitical climate and macro impact had been quite unfavorable. As a result, bitcoin and most major cryptoassets experienced drastic price drops during the first half of 2022.
While awaiting the July CPI report, many cryptocurrencies fell on August 9. In turn, BTC fell 4% to trade at $23,100. This sudden decline was after it hit the $24,000 level from Monday. For Ethereum, the fall went below 5%.
But market prices are rebounding, and most assets are moving up. For example, while Bitcoin has climbed above $24,200, Ethereum is rising slightly below $1,900 at the time of writing.
Featured image from Phemex, Chart from TradingView.com
