The prices of Bitcoin, Ethereum, and other major cryptocurrencies returned higher in trading Thursday (14/4/2022), dispelling some of the bearish sentiment over the past few days.
Launching data from CoinMarketCap at 09:00 WIB, Bitcoin shot up 3.93% to a price level of US$ 41,451.97/coin or equivalent to Rp. 594,835.770/coin (assuming an exchange rate of Rp. 14,350/US$), Ethereum strengthened by 3, 66% to the level of US$ 3,139.03/coin or Rp 45,045,081/coin.
Meanwhile, alternative tokens (altcoins) such as XRP rose 2.52% to US$ 0.7342/koin (Rp 10,536/koin), Solana jumped 3.84% to US$ 107.14/coin (Rp 1,537,459/koin). ), Cardano appreciated 3.56% to US$ 0.9835/coin (Rp 14,113/coin), Terra flew 7.05% to US$ 89.6/coin (Rp 1,285,760/coin), and Avalanche jumped 5 ,88% to US$ 81.25/coin (Rp 1,165,938/coin).
The crypto market is starting to recover after being corrected in the last few days, as investors are worried about rising inflation in the United States (US) and the potential attitude of the US central bank (Federal Reserve / The Fed) to become increasingly hawkish.
Although starting to recover, traders still tend to be cautious in the midst of uncertain global conditions because the Russia-Ukraine conflict has not shown any signs of peace.
“Traders’ behavior today appears to be shifting from the dominance of realized losses, towards taking small profits. 58% of Bitcoin transaction volume is currently realizing gains,” said Glassnode, in its daily research report, quoted by CoinDesk.
Earlier on Tuesday US time, the US Department of Labor reported that the inflation rate from the consumer side (Consumer Price Index/CPI) in March 2022 reached 8.5% compared to the same period the previous year (year-on-year/yoy).
This figure is higher than market consensus compiled by Reuters with an estimate of 8.4% and is the highest on record since December 1981.
Meanwhile, inflation from the US producer price index (PPI) in March jumped 11.2% on an annual basis (yoy).
The rising US CPI and PPI data further strengthened market confidence that the US central bank (Federal Reserve / The Fed) would raise its benchmark interest rate faster.
Market consensus compiled by Reuters predicts the Fed will increase the Federal Funds Rate by 2.5 percentage points this year. If realized, it would be the first since 1994.
Even so, there is speculation that inflation in Uncle Sam’s country has reached its highest point and will gradually weaken.
On the other hand, the planned Ethereum merger is no longer expected in June. After weeks of speculation, Ethereum core developer Tim Beiko confirmed in a tweet on Tuesday that the long-awaited Ethereum merger will come later than expected.
Instead of taking place next June, Beiko said the network’s transition to proof-of-stake is more likely “in the next few months.”
“This merger was supposed to take place in June, but probably in the next few months. No exact date yet, but we’re definitely in the final chapter of PoW on Ethereum,” Beiko tweeted.