Since August 9th, we have seen a shift in general sentiment in the cryptocurrency market. This is due to his CPI news release in the US coming out on August 10th.
Analysts expect inflation to have already peaked in June due to lower gas prices and supply chain problems. A survey of the New York Federal Reserve this week showed positive consumer sentiment since June.
According to CNBC, consumers expect inflation to continue at a pace of 6.2% next year and 3.2% annually over the next three years.
This is a significant drop from the June survey results of 6.8% and 3.6% respectively.
Is it time to step back?
Mixing it all up is altcoin heavyweight Ethereum, whose price has fallen 5.13% since August 9. According to CoinMarketCap, ETH price was at $1,687 after breaking $1,700 at press time.
There is a growing consensus in the market that a dramatic shift in sentiment is expected to turn around soon.
That being said, according to glass nodeopen interest in perpetual futures contracts hit new lows on the Kraken.
Essentially, it hit a 19-month low of $12.09 million on August 10th, with the previous low on August 7th.
A decline in interest in futures contracts could mean short-term bettors are less optimistic about general market conditions.
However, they usually tend to change their behavior quickly to suit prevailing feelings.
rise from below
However, there are other indicators of growing optimism in the Ethereum community.Recent update claimed that exchange withdrawals (7d MA) hit an 18-month low of 1,810.2.
Withdrawing your holdings from an exchange is usually seen as a bullish notice for an asset.
Additionally, the latest CoinShares report found The institution has accumulated ETH-based funds for seven consecutive weeks.
The main reason for this interest is due to the planned merger in September.
Asset manager grayscale announced You may be able to start staking for investors immediately. The main obstacle, however, is the risk associated with staking-related rewards.
We currently hold no assets in any investment vehicle.
However, our team has been working diligently to identify a solution that allows investors to mitigate risk while earning staking-related rewards.(2)
— Grayscale (@Grayscale) August 9, 2022
Well, hopes of inflation news may have dampened short-term sentiment among Ethereum investors.
However, there is still hope for Merge as it promises greater returns for investors.