On Wednesday, the cryptocurrency market moved to a technical correction after updating on the eve of historical highs. The increase in producer prices in the United States coincided with expectations and did not become a reason for further growth in inflation expectations, but it can be provided by today’s report on consumer price dynamics at 16-30. Recent episodes with the suspension of production in China promise the continuation of interruptions in the supply of goods in 2022, which will continue to maintain a high price level – the rise in prices in industry to the maximum in 25 years in the “world factory” leaves no other option.
At the same time, the reaction of traditional financial markets cannot but surprise – in real terms, US government bond yields have reached anti–records, and stock valuations in comparison with GDP have reached new “cosmic” heights. At the same time, from mid-November, the Fed will begin reducing the supply of new liquidity to the financial system. In other words, the medium-term favorable prospects of bitcoin and other cryptocurrencies through correlation with it look unshakable if the previous correlation with inflation expectations continues to be maintained and digital assets will be perceived as an alternative to those that are nominated in fiat.
Tim Cook has acquired a crypt, but is not yet ready to decide on it within the framework of Apple (NASDAQ: AAPL).
Ripple has included Bitcoin, Ethereum, BCH, LTC and ETH in the Liquidity Hub liquidity management service for financial institutions (it will be launched in 2022). A similar solution is being implemented by NYDIG and a number of other companies. The implementation continues, cryptocurrencies are becoming more mainstream every day. Coinbase (NASDAQ:COIN) has refreshed the dynamics of the number of crypto users, which exactly repeats the growth of the Internet audience in the past. The latest Coinshares report showed an influx of $174 million of institutions into crypto products (+$8.9 billion since the beginning of the year).
On-chain data so far favor the preservation of positive dynamics. The growth of traffic on bitcoin exchanges, the increase in the fear and greed index, the rise in financing rates in the market of perpetual contracts may indicate the approach of overheating, if not one thing, but. The update of records was accompanied by an increase in volumes. $60,000 was protected by “whales”. For many altcoins, “shots” began after the consolidation was completed. This is a sign of a likely transition to FOMO mode in case of continued positive dynamics.