U.S. inflation slowed to 6.4% in January but came out above the forecasted 6.2%. Consumer Price Index (CPI) data, released on February 14, showed that prices for a range of goods and services rose by 6.4% over the past 12 months, down slightly from an annual rate of 6.5% in December and a 40-year high of 9.1% in June. Is that good or bad for crypto? Here are some thoughts from the experts at 001k.Trade.
On the background of this positive news, the crypto market turned “green.” Bitcoin, Ethereum, and most altcoins started to go up in price.
But before that, the SEC pounced on BUSD and people started rejecting it, and coincidentally (or not), on Monday, Tether minted another $1 billion worth of USDT. It looks like it was expecting an influx of new buyers.
We’re confused by one fact from yesterday. Ahead of the inflation report – that’s the conditional BUSD scam. I mean the problems at BUSD and Binance (withdrawals, abandonment of manual stablecoin). The day before important data, crypto was being pushed down when the whole stock market was rising yesterday. Isn’t it a possibility that the insiders there already ran to buy, and in crypto decided to have a little manipulation?
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Like, we’re going to release the Binance scam, people will panic and run to sell and think about their stablecoins, and we’ll print 2 billion USDT and buy up to the brim. It turns out the media worked well, printed Tether well, and held the price well.
Hold the price. Here’s the thing. We thought about this fact yesterday. That we, in cryptocurrency, measure the level of problems not by fact, but only by the graph of falling or rising prices.
They didn’t fall much yesterday, so what? There wasn’t anything wrong with it. The Binance exchange (which is the largest) gave up its stablecoin, the stablecoin went free-floating (the third most popular), and Binance had outflows. The problem was very big. But what are we seeing? The price stands. Or maybe it’s being held and redeemed with its Tether bundles? And that’s why we never went deep.
If you ask me, the problems are very serious. And today everyone will forget, but only because we did not fail and there was no risk off. In another case, we would have seen a 10-20% plummet on Bitcoin, and then the news would have been perceived differently. And here it turned out to be purely a scare; CZ quickly agreed with everything, gave a deadline of February 24 (conditionally the next bull run), shut everything down, and drove on.
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