Inflation is a subject that we’ve been reading about for a while now. Take a look at the latest accurate reports revealed by the online publication CoinDesk.
Inflation in the US
It’s been revealed that traders looking for an explanation for bitcoin’s (BTC) latest failure to stay above $24,000 may want to look at what the bond market is saying.
According to CoinDesk, the yield on the U.S. 10-year Treasury note “rose to a three-week high of 2.90% early today, extending the recovery from the low of 2.67% hit after Wednesday’s inflation data.”
The same reports revealed the following:
“The two-year yield held steady at around 3.20%, having put in a low of 3.08% on Wednesday, per data sourced from charting platform TradingView.”
It’s also important to note the fact that the continued rise in yields is probably a sign that traders of risk assets, including BTC might be wrong to conclude that inflation in the U.S. has peaked and the Federal Reserve will probably slow liquidity tightening in the coming months.
“If Thursday’s news meant it was time to celebrate victory over inflation, then the market response should have been straightforward,” John Authers, Bloomberg’s opinion columnist, said in an article published Friday.
He continued and stated the following:
“Bond yields should fall, as the Fed would logically seem unlikely to keep rates either as high or as long as had been feared.”
Coinbase issues crypto warning
Coinbase is predicting that the downward trend recorded in the crypto market in the second quarter (Q2) is likely to continue into the third quarter (Q3).
According to Coinbase, two metrics are sending warnings on the likely fortunes of the crypto exchange during the third quarter – trading volumes and the number of monthly transacting users (MTUs).
“Soft crypto market conditions from Q2 are continuing into Q3 and are reflected in our Q3 outlook…”
