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How US CPI data (June 2022) will affect cryptocurrency market and other top 5 news you should know today

The US Consumer Price Index (CPI) figures for June 2022 are expected to be out today. The White House is expecting the June CPI numbers to be “highly inflated”.

US consumer price index june 2022
Heightened inflation numbers may once again send the crypto markets into a tailspin. Representative image

The US Consumer Price Index (CPI) figures for June 2022 are expected to be out today. The White House is expecting the June CPI numbers to be “highly inflated”. But it believes that the CPI data would be backwards-looking as falling energy prices may have already eased some inflation concerns of Americans, who were earlier grappled with a substantial increase in the cost of food and gasoline.

High inflation numbers could lead to further interest rate hikes by the US Federal Reserve. Crypto experts believe that heightened inflation numbers may once again send the crypto markets into a tailspin due to Fed tightening fears. However, if the CPI numbers surprise everyone with indications of US economic cooling, crypto markets may witness an upward movement.

Earlier, high inflation numbers released in May had triggered a collapse in the stock, bond and crypto markets. The CPI data had then forced the US Federal Reserve to accelerate the pace of interest rate increase at its June policy meeting to 75 bps from 50 bps announced in the previous meeting.

In anticipation of increased inflation numbers, crypto markets have already been correcting for the last few days. Top cryptocurrency Bitcoin’s price has plunged to $19,496 in the last 24 hours

Meanwhile, the following are some other top news from the world of cryptos you should know today:

1. First global crypto rules soon

The Financial Stability Board (FSB) has said in a statement that it will propose “robust” global rules for cryptocurrencies in October this year, news agency Reuters reported. The announcement comes after recent turmoil in crypto markets which highlighted the need to regulate the speculative sector.

FSB is a body of regulators, treasury officials and central bankers from the Group of 20 (G20) economies.

2. Celsius pays debt to Aave

Troubled crypto lender Celsius Network has fully paid off its debt on decentralised finance (DeFi) protocol Aave, according to a CoinDesk report. Celsius Network suspended withdrawals last month and cut jobs.

ALSO READ | Is crypto worth investing in 2022?

3. Three Arrows co-founder appear

The “missing” co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) have finally broken their nearly month-long silence. Zhu Shu, a 3AC co-founder, accused the court-appointed liquidators of “baiting”.

“Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants,” he tweeted.

4. Crypto Fear and Greed Index drops further

The Crypto Fear and Greed Index, which tracks crypto market sentiments, has dropped 6 points to 16 and remains in the “extreme fear” zone.

5. STEPN reports profit

Move-to-earn Solana blockchain-based platform STEPN (GMT) has reported a $122.5 million profit in Q2 2022 even as the crypto markets have faced one of their worst crashes during this period.

(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)

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