The Global Crypto Market Cap Rises Despite CPI Increase and FTX Liquidation Approval
The global crypto market cap is on the rise, despite unexpected events such as an increase in the US Consumer Price Index (CPI) and the approval of FTX’s liquidation plan. The CPI, which measures inflation, saw a 0.6% hike in August 2023, surpassing expectations with a year-on-year increase of 3.7%. However, it is unlikely that the US Federal Reserve (FED) will implement another aggressive rate hike in response.
Furthermore, FTX’s liquidation approval was anticipated to have a negative impact on the crypto market. However, to mitigate potential market turmoil, the sales limit for FTX’s top crypto holdings has been set at $100 million per week. Notably, there are reports suggesting that DWF Labs and Justin Sun are considering purchasing FTX’s digital assets.
Global Crypto Market Cap Sees Increment Despite Bearish Events
Despite the unexpected CPI increase and FTX’s liquidation approval, the global crypto market capitalization has risen by 1.2% in the past 24 hours. CoinMarketCap data shows an increase from $1.031 trillion to $1.05 trillion at the time of writing, indicating a $12 billion surge. In contrast, the global crypto trading volume has experienced a 5.5% decline over the same period, reaching $29.2 billion.
Analysts initially predicted a short-term price squeeze for Bitcoin (BTC) following these bearish events, but instead, the market has witnessed a rally. This demonstrates the resilience of the crypto market and suggests that investors are still confident in its long-term prospects.
Hot Take: Crypto Market Remains Resilient Despite Economic Indicators
The recent increase in the US Consumer Price Index (CPI) and the approval of FTX’s liquidation plan were expected to have a negative impact on the crypto market. However, the global crypto market cap has defied these expectations by experiencing a rise in value. This demonstrates the resilience and confidence of crypto investors in the face of economic indicators.
While short-term price squeezes were initially predicted for Bitcoin (BTC) and other cryptocurrencies, the market has instead seen a rally. This suggests that investors view these events as temporary challenges rather than long-term threats. As the crypto market continues to evolve, it is important to closely monitor economic indicators and their potential impact on digital assets.
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