Today, the U.S. annual inflation rate hit a 40-year high of 7.9%, according to CPI data.
Across the pond, the ECB released its latest monetary policy decisions, revising inflation expectations upwards and GDP growth downwards.
Despite both highly negative news items coming out around the same time today, the crypto markets have remained largely unfazed.
Share this article
The crypto market has remained unfazed following the release of the latest consumer price index data that put the U.S. annual inflation rate at a 40-year high of 7.9%.
Crypto Market Stagnant on Record U.S. Inflation News
The crypto market hasn’t reacted to the news of record-high U.S. inflation numbers.
According to the latest data published by the U.S. Bureau of Labor Statistics today, the consumer price indexed increased by 0.8% on the month in February, putting the current annual inflation rate in the U.S. at 7.9%—the highest since January 1982. Increases in the indexes for gasoline, food, and shelter were the largest contributors to the increase, the Bureau said. Energy alone has surged 25.6% over the last year, with gasoline and natural gas rising 38% and 23.8%, respectively.
Global inflation rates had begun surging even before the Russia-Ukraine crisis. Two years of intermittent lockdowns and unprecedented money printing in response to the COVID pandemic contributed to inflation. Now, a war in Europe between two of some of the world’s largest oil, gas, grain, and fertilizer exporters is threatening to only make things worse for consumers. Supply-side shocks triggered by the Russian invasion of Ukraine have already sent global commodity prices soaring to record-highs in March.
Across the pond, things aren’t looking any better. Today, the European Central Bank released its latest monetary policy decisions in which it revised its inflation and economic growth forecasts. The ECB now sees annual inflation in the EU at 5.1%, opposed to the 3.2% from three months ago. On the other hand, GDP growth has been revised downwards, with projections now foreseeing economic growth for the next three years at 3.7%, 2.8%, and 1.6%. Due to the Ukraine war, the ECB has decided to leave key interest rates unchained but start curbing its Asset Purchase Programme until the monthly net purchases are decreased from €40 billion in April to €20 billion in June.
With news of both the record-high U.S. inflation rate and ECB’s bleak economic outlook coming out at roughly the same time today, the crypto market has interestingly not reacted at all. The industry’s two largest cryptocurrencies, Bitcoin and Ethereum, are down 6.6% and 5.2% for the day, trading mostly in line with the broader crypto market, which is down 5.1% for the same period. The relatively stagnant price action can perhaps be explained by the fact that both the U.S. CPI numbers and ECB’s new monetary policy moves have fallen largely in line with market expectations.
Interestingly enough, both Bitcoin and Ethereum rallied on similar inflation news in November 2021, with each hitting new all time highs shortly thereafter.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
What is Rarible: A DAO for NFTs
What was once dismissed as a silly and expensive sector, NFTs give creators access to global markets in a way that’s never been possible before, and it’s all thanks to blockchain.Those familiar…
Terra Now Sixth Biggest Crypto With Jump to New High
The Luna Foundation Guard also added $418 million to its reserves today. Terra Breaks All-Time High Terra is leading today’s market rally. Per data from CoinGecko, the stablecoin-focused blockchain’s LUNA…
As the Market Rebounds, Avalanche Looks Set to Break Out
Avalanche’s AVAX token appears to be gaining bullish momentum. Still, it is yet to overcome a significant supply barrier that would allow its price to advance. Avalanche Faces Resistance After…
Commodities Are Soaring. That’s a Bad Sign for Crypto
Oil, gas, wheat, and precious metals are soaring and adding inflationary pressure to already-high CPI inflation numbers. Historically, such surges in energy and oil prices have led to global recessions,…
Bitcoin, Ethereum Dip as U.S. Inflation Hits 40-Year High
The market is reacting negatively to the consumer price index’s report on U.S. inflation. Bitcoin, Ethereum Dip on Inflation Update U.S. inflation has hit a 40-year year-on-year high, and crypto…