Yesterday, the US CPI data for June increased the Fed’s tightening bets. After that, BTC, SHIB, and altcoin prices proved surprisingly resilient. Many analysts were predicting a collapse as the CPI data came in above expectations. However, this did not happen. So what will happen today? For you, we have compiled 5 events that have the potential to impact the cryptocurrency market today.
Fed likely to raise rates by 100 basis points in July
CPI data released yesterday came out above the market’s expectations. Markets had expected a reading of 8.8%, but the data showed a reading of 9.1. So US inflation doesn’t seem to be getting better. Therefore, the FED is likely to make further tightening and rate hikes. As it is known, the FED has already increased the interest rate by 150 basis points in 2022 in order to reduce inflation. Now, more increases seem to be on the way. Before the CPI data, the markets had expected an interest rate hike of 0.75 points in July. However, this expectation has now increased to 100 basis points, as the data came out above expectations. Currently 75% of the market is betting on the mentioned high score boost. If this happens, it is possible for BTC, SHIB and altcoins to be adversely affected.
BTC, SHIB and altcoins stand strong against FED
Prices took a short-lived hit after higher-than-expected US inflation data. However, major cryptocurrencies have since rebounded. Bitcoin closed a five-day losing streak yesterday. The world’s largest cryptocurrency by market cap is up more than 5.0% from Wednesday’s lows of just under $19,000. Accordingly, it is currently changing hands for just under $20,000. Additionally, the BTC/USD pair found resistance near the 21-Day Moving Average ($20,400).
Recent price action shows that investors are reluctant to push the price below the bearish flag that has formed in recent weeks. Meanwhile, Ethereum is trading in the $1,100 region, bouncing more than 9.0% from Wednesday’s lows. The recent price action in ETH/USD confirms that the pair is in the $1,000-1,280 range. Other major altcoin assets are also bullish. However, Polygon (MATIC) showed the best performance. MATIC gained 16% after announcing its participation in Disney’s program.
Not SHIB: Polygon (MATIC) rose hard on this news
Disney made a statement on Wednesday. Accordingly, Polygon, an Ethereum scaling solution, has been selected as one of six companies to participate in the 2022 Accelerator program. The giant company says its business development program is designed to support the growth of innovative companies. Disney hopes the program will foster the development of augmented reality, NFTs and artificial intelligence. He will offer guidance from Disney’s senior leadership team to each of the six companies, according to the statement. It will also appoint a special advisor at the executive level to selected companies.
The announcement sent MATIC, Polygon’s native token, to the moon. According to CoinMarketCap, it has recorded gains of around 16% in the last 24 hours. Thus, it became the best performing altcoin in the top 20 by market cap. This rally took MATIC/USD to fresh highs near $6.50 since early June. SHIB, on the other hand, did not perform as well.
Celsius flags bankruptcy
Crypto lending platform Celsius Network halted customer withdrawals more than a month ago due to “extreme market conditions.” The company said it has now filed for Chapter 11 bankruptcy protection in New York. Celsius Network’s CEL token gained as much as 58% in the hours following the announcement. Yesterday, some crypto lending companies announced that Celsius is no longer paying loans to DeFi platforms.
Is the NFT hype returning?
CryptoPunks collection is one of the most expensive and popular collections available, as we have reported as Kriptokoin.com. Yesterday, a sale was shared on the collection’s official Twitter account. Accordingly, Punk 4464 was sold for 2,500 ETH on Tuesday. In this issue, ETH was equivalent to $2.6 million in that time frame. In the same period, another CryptoPunk NFT, Punk 9280, also received a bid of $2.6 million. However, this offer was not accepted. The notable CryptoPunk NFT deal came with the recovery in the base price of the collection. The base price, which was $57,000 a month ago, is currently hovering around $87,000. However, this is still well below the $200,000 levels in the first quarter of this year. The base price increase on other notable NFT collections hasn’t been as impressive. NFT prices are important as they are directly linked to BTC, SHIB and altcoins.
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