In a week that promised to be decisive for Bitcoin and risky markets, the mother of cryptocurrencies has chosen its side. That of the bears. After the release of the US inflation figures, Bitcoin and the crypto market are unscathed. The asset lost almost 5% of its value and over $1,000 in a matter of minutes. As for the crypto market, the losses are in the billions.
Inflation drops with Bitcoin
Although forecasts were counting on inflation at 8.1% over a rolling 12 months, this seems stronger than expected at 8.3%. If the decline is present for the second month in a row, the hope of prospects has largely pushed Bitcoin down. Another feature, inflation over 1 month posted an increase of 0.1% while the general consensus expected a fall of 0.1%. And maybe on this variable that pinches the shoe.
What we give Heart inflation, that is to say excluding food and energy, an increase of 0.6% in August, and the general consensus was counting on the same increase as in July (+0.3%). Over a rolling 12-month period, “core inflation” is 6.3%. The players in the financial world were counting here again on more optimistic figures at 6.1% after the 5.9% in July. If inflation doesn’t look like that, the prospects for a bigger-than-expected rate hike at the next Fed meeting could increase. Then feed the negative spiral.
The following graph, available from the Coinmarketcap platform, shows the price of Bitcoin over the last 24 hours:
Within minutes, the mother of cryptocurrencies saw a huge influx of sales. From $22,600 at 2:30 pm, Bitcoin fell to $21,300 less than an hour later. As of this writing, the asset is trading for $21,427. This episode confirms that this week is decisive for volatility in the crypto market.
The altcoin market has taken a hit
Like Bitcoin, all altcoins are also suffering from these nasty inflation figures. While waiting for The Merge, Ethereum and the others pale in comparison. To the point of accusing for the most part, more significant reductions than Bitcoin.
The following table shows the price of the main altcoins and the losses in the last 24 hours:
|Encrypted||Course||Change over 24 hours|
|Ethereum (ETH)||$1,610.84||– 7.81%|
|BNB (BNB)||$284.67||– 4.46%|
|XRP (XRP)||$0.3424||– 3.90%|
|Cardano (ADA)||$0.4767||– 3.84%|
|Solana (SOL)||$35.76||– 5.97%|
|Polka dot (DOT)||$7.34||– 8.15%|
|Dogecoin (DOGE)||$0.006101||– 5.52%|
|Polygon (MATIC)||$0.8656||– 6.56%|
|Shiba Inu (SHIB)||$0.00001229||– 5.79%|
|Avalanche (AVAX)||$19.96||– 8.28%|
Although the crypto market had a relatively positive day, it has just suffered significant losses: almost 50 billion dollars of capitalization just flew in an hour.
This downward trend is also found in the stock market. When the US stock market opened, the benchmark S&P 500 index gave up more than 2% of its capitalization. The same for the NASDAQ which fell 3.07% and the Dow Jones which suffered losses of 1.93%. As usual, this downward trend was also contagious for the stock markets of the old continent. The CAC 40 has just lost more than 100 points in barely an hour, while the DAX 30 has lost 2% since the beginning of the afternoon.
Project Tamadoge: a credible alternative?
When investing in digital assets, the diversification issue be at the heart of the strategy. If it is advisable to invest in priority of the main projects, it can be interesting to have young projects within your crypto portfolio. And among the most promising young projects at the moment, let’s mention Tamadoge, the platform that updates tamagotchis in 2022.
Specifically with Tamadoge, the user will be able to see a virtual creature develop, feed it and develop its skills. A true cornerstone of the entire ecosystem, the TAMA token is currently being offered for pre-sale at a price of $0.0275. It could be listed in the coming weeks on major decentralized exchanges. To boost your crypto portfolio, startups are often great opportunities to generate profits. But they are also risky projects. It is therefore advisable to invest carefully.