As a seasoned analyst with over two decades of experience under my belt, I’ve seen my fair share of market fluctuations and trends. This latest development in the financial and cryptocurrency markets presents an interesting opportunity for investors who are not shy of taking calculated risks.
In August, there was a decrease in the cost of everyday consumer goods, fueling optimism that the Federal Reserve might lower interest rates during their meeting in September.
On August 14, cryptocurrencies and U.S. stocks experienced an upward trend following the publication of July’s inflation data. THORChain (RUNE) emerged as the day’s top performer with a 12% surge. Toncoin (TON), Notcoin (NOT), and Celestia (TIA) also saw significant gains, exceeding 10%.
Toncoin’s token reached a peak of $7.27, marking its highest price since July 20th and a 51% rise from its lowest point this month. Meanwhile, Notcoin, a well-known earn-as-you-tap token, went up to $0.0128, and Celestia soared to $6.60. Major players like Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) also saw gains, all trending positively.
US inflation slowed in July
Based on data from the Bureau of Labor Statistics, the overall Consumer Price Index (CPI) decreased slightly to 2.9% in July compared to June’s rate. On the other hand, the core CPI, which excludes food and energy prices, dipped slightly from 3.3% in June down to 3.2% in July. However, both figures saw a slight increase of 0.2% when comparing monthly figures.
Yesterday saw a surge in American equities following unexpectedly weak CPI data from the U.S., which was published a day earlier and had previously reported lower-than-anticipated producer price index figures. The Dow Jones and Nasdaq 100 indices both climbed more than 400 points, while the U.S. dollar index experienced a decrease.
As a crypto investor, I’m observing signs that suggest the Federal Reserve might reduce interest rates during their September gathering. In a recent Bloomberg interview, David Rubenstein, a billionaire entrepreneur from Carlyle, forecasted a more conservative cut of 0.25% rather than the usual 0.50%. He attributed this prediction to the upcoming U.S. election period.
The digital currencies such as Celestia, Notcoin, and Toncoin might experience an increase due to interest rate reductions, as these changes often encourage investors to explore riskier financial avenues. Consequently, this pattern provides insight into why many cryptocurrencies saw growth during the Covid-19 pandemic.
TON $40 million venture fund
The prices for both Toncoin and Notcoin climbed upwards following the announcement of a fresh $40 million investment fund by the TON Blockchain, which is supported by Telegram, aimed at boosting networks within their ecosystem.
The development team anticipates that these funds will entice both newcomers and experienced developers transitioning from other blockchain networks such as Ethereum and Solana. This venture capital infusion coincides with a flourishing period for the Toncoin ecosystem, which is bolstered by gaming and tap-to-earn platforms like Hamster Kombat and TapSwap.
The TON Blockchain holds approximately $600 million worth of assets within its Decentralized Finance (DeFi) environment. STON.fi, DeDust, and Tonstakers are the primary contributors to this platform’s activity.
Blockchain-based ecosystem funds are a widespread practice. Notably, the Manta Foundation recently unveiled a $50 million fund in late June. Other platforms with comparable funds are Base, Avalanche, and Sui.
In essence, the surge in Celestia’s rally was largely due to investors capitalizing on price drops, as there were no significant updates regarding the network at that time.
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2024-08-14 17:42