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US PPI Inflation Data Further Sparks Concern Over Bitcoin Dip Ahead

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2 hours ago

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The highly awaited US Producer Price Index (PPI) data showed that inflation has come in hotter than expected at 1.8% in September, as compared to market expectations of 1.6%. This rising inflation figure, especially after the recent US CPI data, has sparked concerns in the market, over its potential impact on BTC and other crypto. Besides, the latest set of gloomy economic data has fueled debates if the US Federal Reserve would once again move with a tightened monetary policy ahead.

US PPI Comes In Hotter-Than-Expected

The latest Labor Department data showed that the US PPI inflation came in at 1.8%, up from the 1.7% level noted in August. On a month-over-month (MoM) basis, the inflation remains unchanged at 0.0%, after rising 0.2% in the prior month.

Simultaneously, the Core PPI inflation soared significantly to 2.8% last month, up from the market expectations of 2.6% and the 2.4% level of August. On an MoM basis, the Core PPI figure, which excludes the food and energy prices, came in at 0.2%, as compared to 0.3% in the previous month.

These hotter-than-anticipated inflation figures have sparked discussions in the broader financial sector, let alone the crypto market. The recent US CPI data also exceeds the market forecast, signaling a hawkish stance by the US Fed at their upcoming gathering next month.

Bitcoin Dip Ahead?

The latest US PPI data has weighed on investors’ sentiment, indicating that the inflation in the nation is once again soaring. It has sparked concerns over a potential dip in Bitcoin price ahead, fueling debates over smaller or no Fed rate cut at the central bank’s upcoming gathering.

However, the BTC price traded near the flatline during the writing and exchanged hands at $62,000. Its trading volume rose 6% to $30.4 billion, and the flagship crypto has touched a high and low of $61,383 and $58,895 in the last 24 hours.

After the inflation data today, the US 10-year Bond Yield rose 0.34% to 4.109, while the US Dollar Index fell 0.03% to $102.737. Meanwhile, according to the CME FedWatch Tool, there is an 88% probability of a 25 bps Fed rate cut at the central bank’s upcoming meeting, with the other 12% betting over no rate cuts. Previously, the market was anticipating a larger interest rate of 0.5% by the US Fed.

CME FedWatch Tool Fed Rate Cut US PPI InflationCME FedWatch Tool Fed Rate Cut US PPI Inflation
Source: CME FedWatch Tool

The latest US Job data and the inflation figures have sparked concerns over a potential hawkish stance by the US Fed at their upcoming meeting. Now, the market will keep a close track of the Fed officials’ comments for potential cues on the central bank’s upcoming move with their policy rate plans.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Tron’s Justin Sun Shares Vision For Liberland As Prime Minister

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5 hours ago

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October 11, 2024

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On Thursday, Tron founder Justin Sun was declared the Prime Minister of micronation Liberland, after emerging as the winner following a congressional election that happened entirely using blockchain technology. In a detailed message on the X platform, Sun shares his vision for the sovereign state that resides between Croatia and Serbia, on the west bank of the Danube river.

Justin Sun’s Plans As Liberland Prime Minister

After confirming his role as the Prime Minister of Liberland, Sun expressed his enthusiasm for the role while outlining his vision for the future of the country. Sun emphasized that Liberland is not just a geographical entity but a symbol of a political philosophy that advocates for individual liberty, minimal government intervention, and autonomy.

He said that the goal of the micronation is to reduce government spending, lower taxes, and minimize interference in citizens’ lives to foster genuine economic prosperity. He also named other global leaders like Argentine President Javier Milei and U.S. Congressman Ron Paul who align with these ideas.

Justin Sun also stressed that Liberland is a primary example of how citizens can thrive by adopting a minimalistic governance model. He also noted that innovators like Elon Musk share these beliefs, advocating for less centralized control to spur creativity and progress, aligning with Liberland’s core values.

Besides, Sun added that as a Prime Minister, he would promote the principles of libertarianism and small government and make Liberland a global model for other nations. He wrote:

“Just as Vatican City represents a central spiritual authority for Catholics, Liberland will be the heart of the libertarian movement. Libertarians everywhere may have their own countries and nationalities, but Liberland will serve as their ideological homeland—a place where their beliefs in freedom, autonomy, and voluntary governance are respected and embodied”.

Recently, Justin Sun also shared his vision to rank Tron among Bitcoin and Ethereum within two years.

Thinking Beyond Geographic Boundaries and Bloodlines

Furthermore, Justin Sun stated that the truly unique thing about Liberland is that micronation shares its relation with citizens on shared values and principles, thus moving beyond bloodlines or geographic boundaries. “There are no forced obligations, no taxes, and no mandates imposed on its citizens,” he wrote.

Thus everything will work on a shared voluntary participation and mutual respect. Commenting on this development, Cardano co-founder Charles Hoskinson stated that Sun’s appointment as Prime Minister of Liberland represents a new level of craziness in the market and that he doesn’t know whether he should laugh or cry about it.

The development led to a Tron price surge on Thursday aided by an 11 million TRX token burn. At press time, TRX is trading at $0.1593 with a market cap of $13.79 billion.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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BlackRock & Metaplanet Buy Bitcoin Dips As Crypto Market Turns Sour

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8 hours ago

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October 11, 2024

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The recent Bitcoin dip under $60,000 has sent jitters across the market triggering more than $53 million long liquidations in the last 24 hours. However, big players like BlackRock and Metaplanet have been buying on every dip in this market cycle highlighting their confidence in the asset class.

BlackRock, Metaplanet Buying the Bitcoin Dips

Over the last fortnight, BlackRock has increased its Bitcoin holdings by a staggering $742 million looking past the market volatility. The world’s largest asset manager has accumulated a total of 12,272 Bitcoin (BTC) in the past 16 days.

This significant acquisition comes after a period of reduced buying activity between August 27 and September 24, when Bitcoin traded below $60,000 for an extended time. However, since September 24, BlackRock has once again resumed its BTC purchases, taking its total holdings to more than 369,822 BTC, valued at approximately $22.4 billion. This continuous acquisition shows that asset managers have growing confidence in the long-term value of BTC.

Last week, BlackRock advised buying Bitcoins as the US Dollar loses strength over the period of time and thus loses the purchasing power. On the other hand, Bitcoin positions itself as an inflation hedge, and a strong alternative to counter the declining purchasing power of the US dollar.

Apart from BlackRock, Metaplanet is also buying the Bitcoin dips. Metaplanet has made another significant Bitcoin acquisition, purchasing approximately 108.99 BTC for ¥1 billion at an average price of ¥9,174,396 per Bitcoin. The latest purchase comes within four days of Metaplanet buying Bitcoins earlier this week. As of October 11, the company now holds a total of 748.50 BTC, acquired for ¥6.965 billion at an average price of ¥9,304,655 per Bitcoin.

BTC Whales Panic Sell

The recent BTC price volatility has led experts to believe the possibility of another 75% correction, per the historical trends. While BlackRock is buying, crypto whales have also been panic selling in this recent correction.

As per the latest data from Lookonchain, a crypto whale recently panic-sold 800 BTC ($48.5M) following a drop in Bitcoin’s price. Since June 19, this whale had accumulated 11,659 BTC ($727M) at an average price of $62,362 and sold 10,345 BTC ($619M) at $59,847, resulting in a loss of around $26M. Despite the losses, the whale still holds 8,936 BTC valued at $540M.

The BTC price took a dive under $60,000 earlier today following the US CPI data for September and the red-hot inflation numbers. The current movements have made bulls lose the hope for a ‘Uptober’ rally ahead.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitnomial Sues SEC Over XRP Futures, Cites CFTC As Primary Regulator

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11 hours ago

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October 11, 2024

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Bitnomial, a cryptocurrency derivatives exchange, has sued the U.S. Securities and Exchange Commission (SEC) for jurisdiction over XRP futures contracts. This lawsuit is based on the SEC’s position that XRP futures are “Security Futures” and therefore it has the right to regulate. This legal action is taking place at the background of the already existing conflict between Ripple and the SEC over the status of XRP.

Bitnomial Sues US SEC Over XRP Futures

In August, Bitnomial sought approval to list its XRP-USD futures contract after a court decision in the SEC lawsuit against Ripple found that XRP was not a security in exchange transactions. Nonetheless, the SEC kept on insisting that XRP is a security, hence, Bitnomial’s legal proceedings.

The US SEC reached out to Bitnomial after the filing and claimed that XRP futures fall under the purview of both the SEC and the CFTC. The SEC also demanded that Bitnomial should register as a national securities exchange before it could offer XRP futures.

The cryptocurrency derivatives exchange disagrees with such categorization because it holds that XRP is not a security, and thus, the CFTC should be the only regulator to govern XRP futures just like it is with bitcoin and ether futures.

Ripple Vs SEC Case Fuels Broader Disputes

The matter of the status of XRP as security has been one of the key issues in the lawsuit between Ripple and the SEC. In July, a federal judge said that Ripple’s sales of XRP on exchanges were not securities, but institutional sales were considered securities. While the SEC has decided to appeal the decision, Ripple has filed a cross-appeal.

Bitnomial’s case forms part of the increasing list of legal battles that concern the SEC’s control over digital currency. According to Bitnomial’s CEO, Luke Hoersten, this lawsuit is significant not only for XRP but for all digital assets. He emphasized that Bitnomial is in a unique position, as it has not been accused of wrongdoing, to push for regulatory clarity.

Moreover, the CFTC currently oversees futures contracts for bitcoin and ether, which the SEC has acknowledged are not securities. 

The cryptocurrency derivatives exchange has however argued that XRP futures should be treated the same way, with the CFTC having primary oversight. In its lawsuit, it is asking the court to declare that XRP futures are not securities futures and to prevent the US SEC from asserting jurisdiction over the contracts. The exchange believes that clearer regulations are essential for the cryptocurrency market to thrive.

Ripple CEO Take On Crypto Regulation

Ripple CEO Brad Garlinghouse has also condemned the SEC’s recent activities, especially after the SEC charged Chicago-based Cumberland DRW LLC with operating as an unregistered dealer in the crypto market. The SEC alleged that Cumberland conducted more than $2 billion in transactions classified as securities without proper registration.

Moreover, Crypto.com sued the regulator this week, accusing it of exceeding its mandate by classifying several tokens listed on the platform as securities.

This criticism is in line with that of SEC Commissioner Mark Uyeda, who has expressed concerns with the agency’s attitude towards cryptocurrencies. According to Garlinghouse, the SEC’s action against Cumberland is an example of overregulation of the industry, citing the lack of clarity on the laws governing cryptocurrencies.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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