Cryptocurrency is an ever-evolving market that changes by the minute. Altcoins are no exception, with some of them experiencing a 20% price increase in just 24 hours. This sudden surge in value has several reasons, such as increased demand for these coins, inflation, and interest rates, and FTX has recovered ‘over $5B’ in assets.
In this article, we’ll explore three key reasons why altcoins are pumping 20% in just one day.
US Inflation Sinks To Its Lowest Point In Over A Year
Inflation has been declining, according to the Consumer Price Index (CPI), and it was negative from November to December 2022. The US Labor Department reported that annual inflation in the US was 6.5% as of the end of December, dropping from 7.1% in November. That was the slowest rate of growth in almost a year, and it was the sixth consecutive month in which the rate had fallen.
BREAKING: US inflation falls to 6.5%
— EvanLuthra.eth (@EvanLuthra) January 12, 2023
In general, gasoline’s price drop was responsible for the overall price drop of 0.1% over the past month. Vice President Joe Biden praised the findings in Thursday’s remarks. He stated, “It’s obvious that we’re making progress.” “In the end, it’s a relief for consumers and financial stability for families.”
US inflation may have dropped below zero in December (M/M). If it did, would be first negative print since 2020. Data out Thursday. pic.twitter.com/JqKXFHzfyh
— David Ingles (@DavidInglesTV) January 10, 2023
Still, several experts warned that the lower energy prices weren’t trickling down to other goods as swiftly as predicted. As an example, clothing costs increased by 0.5% from November to December and by 2.9% from a year ago. Paul Alsworth, Capital Economics’ senior North American economist, recently stated that “goods deflation isn’t extending out quite as swiftly as we predicted.”
The Federal Reserve’s Fight Against Inflation
The US Federal Reserve’s decisions on interest rate changes have a major impact on the cryptocurrency markets, particularly Bitcoin. As the world’s most valuable digital currency, Bitcoin is heavily affected by these decisions and investors often keep a close eye on them.
Authorities in the United States have been working hard to stabilize prices since 2021, when the economy finally began to recover from the pandemic lockdowns that had crippled it and when businesses faced with shortages and growing expenses began to raise prices in response.
Fed poised to rate-hike downshift after cool inflation data
The US Federal Reserve is planning smaller interest-rate hikes after a further cooling in US inflation, although it will likely continue to hike rates until price pressures show more clear signs of slowing, pic.twitter.com/3Nx8zqja59
— Mlm Trigger(No Confusion) (@TriggerMlm) January 14, 2023
The US policymakers took action by hiking interest rates more rapidly than they have in decades in an effort to get inflation back to the 2% level the central bank considered acceptable. Chairman of the Federal Reserve Board Jerome Powell said last month that the Fed will begin to move less aggressively to assess the effects of its recent actions on the economy.
The Federal Reserve may see the decreasing inflation rate as evidence that interest rate hikes are having the desired effect, but Fed Chair Jerome Powell has shown no signs of wanting to curtail rate hikes much until inflation approaches 2%.
— Reuters U.S. News (@ReutersUS) January 13, 2023
However, with a drop in inflation, the perception of a Fed fund rate hike weakens, causing the US dollar to fall and the cryptocurrency market to rise.
FTX Reclaims Over $5 Billion in Assets Following Bankruptcy, Attorney Reveals
In a surprising turn of events, the FTX Group has reclaimed over $5 billion in assets following its bankruptcy. According to a recent statement from their attorney, this unexpected windfall was made possible through the company’s successful negotiations with creditors.
FTX may be secretly solvent.
– $9.6 billion total assets:
— $5 billion liquid (non-shitoin)
— $4.6 billion illiquid (Ventures portfolio)
– $8.8 billion liability (least confident variable, no official figure yet)
— FTX Creditor (@AFTXcreditor) January 13, 2023
The assets will help to keep the company afloat and better protect investors as they continue to navigate through turbulent times. The company will also use the money to continue its efforts to protect the environment and drive down costs for customers. Hence the news of recovery is driving investors’ confidence back, driving an uptrend in the cryptocurrency market.
Exploring The World Of Altcoins: What Are They And Should You Invest?
Altcoins are quickly becoming major players in the thriving cryptocurrency sector. These alternative cryptocurrencies are promising investments due to their innovative design and scope.
Meta Masters Guild (MEMAG)
Meta Masters Guild is a mobile-focused gaming guild that will build a mix of Web3 and play-to-earn games. Its Ethereum-based games will have playable NFTs as well as incentives that can be swapped for MEMAG, the company’s native token, which can then be staked and sold. It will be sold in seven stages, with the first offering one MEMAG for $0.007.
This price will eventually rise to $0.023, indicating a 228.5% increase for the first investors even before MEMAG becomes public. Meta Masters Guild is projected to grow fast when the platform’s first game (Meta Kart Racers) is released in the second quarter of this year.
Furthermore, if the broader market and world economy improve, its native coin might be a major beneficiary.
Fight Out (FGHT)
FightOut is a blockchain-powered M2E software and gym chain that encourages and pays users for leading a healthy and active lifestyle. Fight Out also promotes a sense of camaraderie in both local and online fitness communities. The app allows members of the community to participate in challenges and receive individualized training regimens with progress tracking.
Fight Out will engage and reward individuals for being active and healthy, while also encouraging the usage of Web3 technology and fostering a better society. Their FGHT coin presale has raised over $2.9 million.
C+Charge (CCHG) is a blockchain-based network that compensates owners of electric vehicles for charging and driving them. Its native token, CCHG, is currently available for purchase. Electric car adoption has risen dramatically in recent years around the world.
The electric vehicle (EV) sector has emerged as a more ecologically friendly alternative to the existing automobile industry, which has been in desperate need of reform for a long time. People may now buy EVs and participate in the green revolution thanks to firms like Tesla, Rivian, and others.
To demonstrate its scalability, the network has already committed to link 20% of Turkey’s EV chargers. 1 CCHG costs $0.013 and is available in BNB or USDT. So far, the presale has raised $274,990.
The token sale for Calvaria, a play-to-earn battle card game, has entered its final stages, having already brought in over $2.7 million, to be precise $2,753,623. Given that the currency is set to debut on exchanges like LBANK Exchange and BKEX Global over the next few weeks, only 11% of the total supply of RIA coins remains.
Calvaria is an intriguing game because it can be played on both desktop computers and mobile devices, and it doesn’t require any form of cryptocurrency to do so. Because of this, it may be able to attract a considerably larger audience than other blockchain-based games.
The release date of the game itself is slated for the second quarter of 2023, and it will take place in a mythological afterlife. The game’s characters will be rendered in full 3D animation, and players will be able to collect and level up cards for use in battle against the game’s various enemies.
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Meta Masters Guild - Next Big Crypto Game
- Backed by Leading Game Studios
- Early Round Presale Live Now
- Low Hard Cap, No Vesting
- Playable NFTs, Rewards, Staking
- Solid Proof & CoinSniper Audited