XRP, XRP Again, and Lastly XRP
Over the weekend some large cap assets were eking out tiny increments of upside which earlier seemed on the verge of being obliterated. Markets are bracing after June inflation numbers that were released signaled startling numbers for consumers. This could explain why XRP saw a 1.9% increase.
This comes after the the SEC had a sensitive documents it wanted to keep under wraps however the judge wasn’t having it. XRP and the SEC remain in an intense legal battle due to the notion that Ripple, issues securities without registering it with the SEC. As of today, XRP is trading at $0.31 cents.
Unstoppable Force meets Immovable Objects
It seems as if inflation just won’t go away. The June Consumer Price Index (CPI) report just came out and inflation is still running hot and rampant. It running hotter than initially anticipated, in fact, it might give a pan in the middle of the desert a run for its money.
After the announcements, the Dow futures tumbled within minutes more than 300 pts. As for crypto, none of the major coins were safe. Bitcoin after trading sideways, dipped below $19,500, shedding 1.9%. An hour later, it was on the verge of sinking below $19,000.
As for the Consumer Price Index (CPI), this rise could signal continued rate hikes. The Fed is set to meet in July with possible discussions for a 75 basis point rate hike and potentially a 100 basis point rate hike.
Going, Going, and Gone
Red hot inflation numbers have left investors puzzled, with many of them left to ponder whether a 0.75% rate hike is in the books for the Federal Reserve. This hike, coincidentally, might save the economy while exploding it.
The recent CPI is the marks the highest paced inflation in over 41 years. As a result of this there are growing fears the Fed might step in again and take action to curve inflation. It turns out this summer, investors might face more than just a heat wave.
The market reacted as a result of the news. The wave of inflation may cause the Feds to continue their hawkish policy and increasing interest rates. As a result, it becomes more expensive to borrow money therefore leading to less economic activity. This activity affects asset prices since less consumers will be willing to spend or borrow money which causes prices of stocks and other assets to depreciate.
Further, a core inflation metric that strips food and gas price measured inflation at 5.9% which is still high. Only time will tell whether the Fed introduces jarring interest rate hikes to curve growing inflation.
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