#inflation

Anticipated rate cuts from the U.S. Federal Reserve are met with the growing challenge of inflation, leaving uncertainty about the regulator’s next monetary policy moves. This is shaping market trends, particularly in crypto.

On October 10, the U.S. Bureau of Labor Statistics released the inflation data for September, with the year-over-year Consumer Price Index (CPI) dropping from 2.5% to 2.4%, moving closer to the Federal Reserve’s target of 2%.

Tiff Macklem, the Governor of the Bank of Canada, cautioned that artificial intelligence could temporarily push inflation higher and undermine financial stability. He pointed out that companies using AI tend to adjust prices more frequently than others.

Fed Chair Jerome Powell recently spoke at the Economic Club of Washington, highlighting the influx of positive inflation data and the unlikely prospect of the economy experiencing a "hard landing."

Elon Musk has shared his relatively indifferent stance towards cryptocurrencies, considering money primarily as a database for resource distribution. He opined that fiat currencies are quite capable of serving this purpose effectively, provided that governments don't abuse the system and fuel inflation.

Derivatives protocol Synthetix has given the green light to the governance proposal SIP-2043, aiming to curb the inflation of the SNX token.

The Cosmos HUB community recently voted on a proposal to reduce the maximum inflation rate of its native token, Atom, from 14% to 10%. The voting concluded with 41.1% in support and 31.9% against the proposal.

The current market landscape marks an unprecedented decline in liquidity, according to Bloomberg Intelligence's senior macro strategist, Mike McGlone. If this pattern holds throughout 2023, he warns of a potential sharp descent in Bitcoin prices, which would ripple through Ethereum, XRP, and the general cryptocurrency domain. “What should be early indications of recessionary times? The best indication should be bitcoin and that’s where I’m looking for the bleeding occasion from bitcoin and it’s still kind of showing what I expected.” “Picture December: Recession looms, Fed hesitates on easing due to inflation,” said McGlone.

December 11 brought news from the US Bureau of Labor Statistics: November’s CPI rose to 2.7%, a 0.1% increase over October’s figure. The data met expectations, and Bitcoin reflected the sentiment with its response.

Tether, the issuer of the world’s largest stablecoin, USDT, is celebrating a decade of operations. In honor of this milestone, the company has announced a documentary titled "Stability and Freedom in Chaos," which focuses on USDT's role in combating national currency inflation, using case studies from countries like Turkey, Brazil, and Argentina.

On September 11, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) year-over-year for August had decreased to 2.5%, down from the previous 2.9%.

The term "ultrasound money" refers to a currency that resists inflation and maintains its long-term purchasing power.

In the face of escalating inflation (211%), Argentinians continue to actively purchase dollar-pegged stablecoins, steering clear of Bitcoin due to its high volatility. For cash purchases of these stable tokens, locals are turning to domestic P2P exchanges due to the country's stringent currency regulations.

• Growth in economic activity has slowed down. • Job gains have decelerated, yet unemployment rates remain low. • The U.S. banking system is sound and resilient. • Stricter financial and credit conditions for households and businesses may influence economic activity, hiring, and inflation. • The target inflation rate of 2% remains a constant goal.

Gate users are raising concerns about suspected artificial inflation of trading data, pointing to irregular spikes in volume over the last week. For instance, on December 5, the total trading volume reportedly skyrocketed to nearly $4 billion, a stark contrast to other days where it seldom exceeded $1.5 billion.

Bitcoin advocate Javier Milei has secured victory in Argentina's presidential elections. Milei, a vocal critic of Argentina's central bank, blames its economic handling for the 140% annual inflation rate of the Argentine peso over the past year.

In the Argentine primary elections, Javier Milei, a candidate who supports Bitcoin and vehemently opposes the Central Bank, has garnered most of the votes. He's not shy about criticizing the Central Bank, dubbing it a conduit for politicians to exploit Argentinians via inflation. Milei is convinced that the salvation lies in Bitcoin, which can instill privacy back into finances. Simultaneously, Bitcoin has hit a fresh historical maximum value when measured in Argentine peso.