Inflation is breathing some air into Bitcoin

Digital alternative to fiat currencies rescued from miscarriage Ten days after the US reported higher-than-expected CPI rises in June, it’s 9.1% year-on-year, its highest level since 1981. Bitcoin rose 1.8% to $19,789 at 3 PM on Wednesday. :07:00 In New York, and yesterday and today, until now, the day is still green.

“Rapidly rising inflation can be financially devastating for consumers, making the concept of Bitcoin a currency that has a currency. no central authority can print any more“Be more attractive than ever to the average citizen,” he said. Hong Fangdigital change general manager okcoin.

Proponents of Bitcoin Limited supply of 21 million coinsIt acts as a hedge against the possibility that central banks such as the Federal Reserve could create an infinite amount of money. It is predicted that the last Bitcoin will be mined around the year 2140.

“I look at it as long-term inflation protection, because the true original definition of inflation is really printing more money, and that’s definitely happening,” he said. Cory Clipsexecutive director SwanBitcoin.

However, others are not convinced that Bitcoin should be seen as a hedge against inflation. George CipolloniPortfolio manager Penn Mutual Asset ManagementHe said bitcoin prices are more correlated with monetary policy and risky assets.

“Sold for real money, real money, and a limited supply and all that good stuff,” Cipolloni said. Said. “And in this case the intention was perfect, but in practice, it turns out to be something more. risky asset what people think.”

Bitcoin crashed about 57% this yearInvestors turned away from riskier assets as the Federal Reserve pulled back stimulus implemented during the covid pandemic to cool growth and prevent inflation from rising any further.

Matt Maleychief market strategist Miller Plate + Co. LLCHe said he was worried that the Bitcoin price would drop due to the loss of momentum.

“This year has shown that Bitcoin is not a hedge, at least at this point,” Maley said. “The only area with good coverage is raw materials “Although gold was not one of them, it was mostly involved in the oil sector,” he said.

Crypto trading volume drops to lowest level since 2020 in June

Spot and derivatives trading volumes fell on all exchanges, More than 15% drop since May It reached nearly $4.2 trillion, hitting its lowest level since January last year. In June alone, spot volumes fell nearly 28% to $1.41 trillion as Bitcoin crashed, the lowest level since December 2020, according to data compiled by. CryptoComparison.

Meanwhile, trading volumes derivatives They fell 7% for the month, the lowest level since July 2021. Derivatives are very important in the crypto space and make up more than half of the market.

For market watchers, the trend makes sense considering the dips in Bitcoin and Ether. more than 70% from all-time highs from last year. Bitcoin slumped 15% on June 18 to $17,599, the lowest price since the end of 2020. This reflects that investors are becoming cautious.

“Volume has dropped due to low investor enthusiasm in a cyclical bear market,” he said in a message. Katie Stocktonco-founder Fairlead Strategies. “We can expect volume to be below average until crypto prices break the bear market cycle that can take months.”

Cryptocurrencies, along with other risky assets, have struggled this year amid higher rates as central banks around the world try to rein in rising inflation. Contents MVIS Crypto Compare Digital Assets 100 Some major currencies are down 60 percent this year. Bitcoin rose 2.8% to $20,208 on Thursday.

According to CryptoCompare, $29 billion worth of Bitcoin futures contracts on the CME last month hit the lowest trading volume since July 2021, while Ether futures contracts lost more than 20%, showing a “downturn” in speculative activity. . The drop in trading volume has occurred across multiple platforms, including: Binance, OKX and FTX.

trend sets a change from the last two yearsAs retail investors, they’ve been stuck at home during lockdowns or turning to cryptocurrencies and other long-term goals to make money from rising prices.

Coinbase may unlist from major crypto exchanges and lay off 20% of OpenSea staff

Coinbase Global Inc. has lost its position on the coveted list Top 10 digital asset exchanges Worldwide in volume as markets battle the crypto winter.

So far, the latest data for this month shows the company is currently the 14th largest exchange and is a long way from the fourth spot it held at the end of 2021. Mizuho Securities USA LLC.

Mizuho said that the leading digital token exchange in the United States has an average market share of only 2.9% among the top 30 exchanges worldwide so far this month. That’s below the average of 3.6% in the second quarter of this year and 5.3% in the first quarter, according to the report.

It’s the last sign of it. earnings track It looks like Coinbase is in trouble, Mizuho said. Coinbase did not immediately respond to a request for comment on this matter.

As cryptocurrency prices have fallen over the past eight months, wipes out about $2 trillion At market cap, trading volumes on most major exchanges fell as retail traders stayed on the sidelines. Coinbase feels boredom “as its business model is face-to-face” structural problems. “While we are in the midst of a perfect storm of more competition in a declining market, acquisition rates are perceived as too high and unsustainable.” Dan DolevAn analyst at Mizuho, ​​in an email.

In June, Coinbase said it would lay off 18% of staff after a series of high hiring. Gemini Trust Co. Like other stock markets, they also laid off workers. It was known a few hours ago that Offshorebiggest platform NFT volume of the world 20% of their employees go to the street.

After the prices of cryptocurrencies started to fall, Coinbase shares are down 84% It rose from an all-time high of $357 on November 9 to currently $53.42.

this the rest of today marked by the rises of the day UNI, MATIC and AAVE. Since Uniswap is listed on Robinhood; As Polygon is the only blockchain chosen by Disney as part of the 2022 Accelerator Program and the third after the announcement of the launch of its own stablecoin, GHO.