In the world of cryptocurrency, Bitcoin, Ether, and most other top 10 non-stablecoin tokens experienced losses, with Polygon’s Matic leading the losers. Bitcoin dropped on Thursday morning in Asia to below US$30,500, as the U.S. government’s potential sale of Bitcoin seized in the Silk Road theft pressured the token. Along with Bitcoin, Ether and most other top 10 non-stablecoin cryptocurrencies also logged losses, with Polygon’s Matic leading the losers. Despite the slowdown in U.S. inflation reported in the Consumer Price Index, the drop in cryptocurrency prices continued. U.S. equity futures rose on the news, but analysts still predict another interest rate hike in July.
The U.S. government’s potential sale of Bitcoin seized from a Silk Road theft also pressured the token. Bitcoin wallets linked to the U.S. Department of Justice (DOJ) moved over 9,800 Bitcoin worth around $300 million to unused addresses in a flurry of transactions on July 12, according to data from Blockchain.com. The move likely exerted further pressure on the token, as has been the case with other large transfers. In 2021, the DOJ seized around 50,000 Bitcoins stolen from the Silk Road darknet marketplace. It is unclear if Wednesday’s transferral between wallets will lead to the U.S. government selling the seized Bitcoin.
Despite the lower-than-expected inflation data recorded in the U.S. CPI report, it may not sway the Federal Reserve from making another interest rate hike in July, according to Nigel Green, CEO of independent financial advisory deVere Group. Green said that central banks’ officials will argue that there is still work to be done to tame inflation and they are unlikely to be dissuaded from their course of action for the time being. While analysts expect a 92.4% chance of a 25-basis-point rate increase this month, they also expect a 12.9% chance for one more 25-basis-point rate hike in September, down from 22.3% on Wednesday. Expectations for further rate hikes in November and December also dropped.
In other news, Google Play announced a policy change that allows apps and games to incorporate NFTs onto their platforms, opening up a huge new opportunity for creators and projects to build with mobile as their backbone. Meanwhile, U.S. stock futures rose, with all three major U.S. indexes closing higher in regular Wednesday trading, with the Nasdaq composite leading the rally with a 1.15% increase. Asian stock indexes also traded higher on Thursday morning, with China’s Shanghai Composite, Hong Kong’s Hang Seng, Japan’s Nikkei, and South Korea’s Kospi all recording rises.
Source: Forkast
