News in brief
- Data from the U.S. indicated higher than expected inflation, which caused Wall Street to dive in red numbers.
- Technological companies reported the worst dive since this January.
- Stronger-than-estimated inflation data raised concerns about a possible economic recession, which was supported by a stronger-than-expected drop in consumer confidence.
- By contrast, the Russian ruble gained 5% on the day as the country’s central bank adopted the opposite trajectory to the Fed, cutting rates to levels not seen since before the war with Ukraine began.
- Bitcoin fell sharply today after surprisingly high inflation data from the United States scared investors.
- Popular commentator WhalePanda cautioned panicking investors over rethinking their BTC allocation due to macro circumstances. “Dumping your Bitcoin because inflation is higher than expected is one of the dumbest things you could ever do,” he wrote.
Bitcoin (BTC) is now trading at $29,102 down by 3,1% in 24 hours
Ethereum (ETH) is now trading at $1,679 down by 6.1% in 24 hours
PlatonCoin (PLTC) is now trading at $1.19 down by 1,6% in 24 hours
Total market capitalization is now $1.244 trillion, down by 3.9% in 24 hours
(all data valid at the time of publishing, from Coingecko.com)
Pension funds and Bitcoin: Michael Sonnenshein, CEO of digital asset management firm Grayscale Investments has said more pension funds are exploring the possibility of diversifying their portfolios to cover cryptocurrencies. Speaking during an interview with CNBC on June 10, Sonnenshein noted that the interest in assets like Bitcoin as a portfolio diversifier is emerging despite the ongoing market pullback. According to the executive, volatility is not the main issue impacting investors as they look at the sector from a long-term perspective.
Jack Dorsey and web5.0: Block subsidiary TBD has announced plans to build a new decentralized web centered around Bitcoin (BTC), underscoring founder Jack Dorsey’s belief that the largest blockchain network will play a major role in the internet’s evolution. The new project, called “Web5,” represents the latest Bitcoin-centric endeavor to be pursued by Dorsey since stepping down as CEO of Twitter in November 2021.
Coinbase and crypto adoption: In a new blog post from Coinbase, the company’s associate Connor Dempsey says that risk-on assets like cryptocurrencies reached a peak late last year when investors realized the same monetary policies that sparked a multi-year bull market would ultimately have to be undone. With crypto markets on the edge of dipping to new yearly lows, Dempsey says that given a long enough time frame, most traders are still in the green.
Would you like to gain a better understanding of the world of cryptocurrencies? Try our series of educational articles for newbies. Did you find a term in the text that you don’t understand? You can find all the most commonly used terms in our glossary.