Most cryptocurrencies and cryptocurrency stocks rose today after new data showed that inflation may be starting to peak.
In the last 24 hours, the world’s largest cryptocurrency price, Bitcoin (Bitcoin 3.70%)traded 4.7% higher as of 10:10 AM ET today, while the price of the world’s second-largest cryptocurrency was at ethereum (ETH 9.16%), traded 8.7% higher.Bitcoin miner stocks on the day clean spark (CLSK 19.87%) It’s trading about 15% higher.
Every week, investors eagerly await the latest reading of the Consumer Price Index (CPI). CPI tracks the price of a variety of everyday consumer goods and services. According to this morning’s data, the index he increased 8.5% in July from a year earlier. Additionally, CPI has been flat since June on a seasonally adjusted basis. Both of these figures were lower than expected, suggesting that inflation may have peaked last month.
The fall was due to a 4.6% drop in energy prices from June. Within energy, fuel prices fell 11% and all petrol prices fell 7.7%. Transport services also fell 0.5 percent from June, while the Shelter Index rose 0.5 percent, but at a slower pace than in the past two months. Additionally, energy services grew only 0.1% from June after he rose 3.5% in June. Within this category, city gas services fell by 3.6% in July.
Better-than-expected inflation reports could mean the Fed’s hawkish policies have worked to keep inflation in check so far this year, and the Fed could ease rate hikes as the year progresses. Bitcoin and Ethereum have fallen by about 50% and 51.4%, respectively, with interest rate hikes this year, and cryptocurrency prices have fallen significantly. As interest rates rise, yields on safer assets rise, putting pressure on growth and risk assets.
In another piece of news, CleanSpark reported worse-than-expected second-quarter earnings last night, but CEO Zach Bradford said in a statement that the company “mined a record number of bitcoins, increasing hash rate We continue to grow by significantly increasing the power.
Additionally, CleanSpark has announced plans to sell the assets of its more traditional energy business and purchase a separate facility for bitcoin mining.
Today is a good day for markets and cryptocurrencies. Because some good news about inflation is finally out.
I have long been a fan of Bitcoin and Ethereum and believe CleanSpark is heading in the right direction after the latest update.
Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum and Jefferies Financial Group. The Motley Fool US Headquarters has a Disclosure Policy.