The crypto markets show some resilience in the face of record inflation.
The crypto markets on Thursday have staged what appears to be a relief rally, with Matic leading the way after US Consumer Price Index (CPI) data showed that inflation is at 41-year highs.
On Wednesday, the US Labor Department released the CPI data for June, showing that inflation year on year in June had risen by a whopping 9.1% beating the 8.8% estimate. Despite this data release, it is worth noting that the crypto markets have rallied, indicating that the data may have already been priced in.
On Wednesday, Wu Blockchain reported that a false US CPI data report claimed that inflation had risen to 10.2% in June, causing markets to fall.
A fake report said that the U.S. CPI rose 10.2% year-on-year in June, causing U.S. stocks to fall. Ethereum fell 5% in 24 hours to close to $1,000. The official data will be released on the 13th, and it is expected to increase by 8.8% year-on-year and 1.1% month-on-month.
— Wu Blockchain (@WuBlockchain) July 13, 2022
As the market rallies, Bitcoin has again reclaimed the $20k price point, up 3.39% in the last 24 hours. Ethereum and BNB are up 5.33% and 3.75%, respectively.
However, Polygon’s Matic leads the way in terms of gains for the top 100 cryptocurrencies by market cap. It is currently up 18.34% in the last 24 hours and 24.02% in the last seven days, trading at the $0.6442 price point.
Notably, it is the second time in less than two weeks that Polygon is leading the markets in terms of recovery. On July 5, The Crypto Basic reported that Matic was leading the market rally following support from HTC mobile.
The latest spike is attributed to the inclusion of the network in Disney’s Accelerator program to build immersive experiences through augmented reality (AR), artificial intelligence (AI), and non-fungible tokens (NFTs).
On-chain data analytics firm Santiment notes that the average Matic trader in the last 30 days is up 28%, the highest since last October. Consequently, Santiment warns that traders may opt to take profit on their positions.
📈 #PolygonNetwork has enjoyed a nice +20% price day as #crypto enjoyed a mild pump after #CPI data. Be cautious of the fact that average traders are +28% on $MATIC in the past 30 days, which is the highest level since October. A cooldown may be required. https://t.co/qJkQBedLlU pic.twitter.com/z863T5QcpW
— Santiment (@santimentfeed) July 14, 2022
While the crypto market cap remains below the $1 trillion mark, it has shown a 2.95% gain in the last 24 hours. The crypto market cap currently sits at $896.13 billion.
In the last eight months, cryptocurrency prices have tanked as investors remain risk-off due to the hawkish stance of central banks in the face of rising inflation. As a result, the crypto markets have become increasingly sensitive to US CPI data.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.