The cryptocurrency market digest (BTC). Overview for 15.07.2022

The BTC is rising on Friday and trading around $20,589. The major cryptocurrency has been recovering for the third consecutive trading session after plummeting to $18,905 on Wednesday.

Market fluctuations were caused by the CPI data for June published by the US. Inflation rate showed 9.1% y/y, the highest reading in 41 years. Market expectations implied 8.8% y/y, which was already rather scary. A bit later, the US reported on the Producer Price Index, which confirmed that the price rally continued and the Fed should do something. These statistics indicate that the Fed might raise the benchmark interest rate by 75 basis points during its next meeting to take place on 26-27 July. Some even say that there might be a 100-point hike if the regulator finds the current situation critical.

If the rate grows higher than expected, it will be extremely negative for the US stock market, hence the crypto market as well. There is a correlation between S&P 500/Nasdaq and the BTC, so the indices may bring cryptos down.

Market players’ attention is now focused not only on the statistics and the American regulator, but also on the current earnings season. After the first reports from the banks, there are a lot of risks here.

USDC is backed by fiat money

Circle released its first public report, which contains information about reserves for stable coin USDC. In total, the token is backed by $55.7 billion: $13.58 billion in cash in banks and $42.12 billion in 3-month US treasuries.

BTC mining cost is declining

According to JPMorgan, the BTC mining cost has dropped to $13,000 against $24,000 in the beginning of June. This is happening due to a decrease in current consumption. However, this fact is believed to have a negative influence on BTC prices.

STEPN: how to make money on virtual sneakers

STEPN reported a 122.5-million profit in the second quarter of 2022. The company announced the growth in the total number of users and activities on the platform. Authors of NFT sneakers are planning to spend some of this money on buying back and burning tokens, while the other part will be steered into the improvement of platform security and server capacity.