The cryptocurrency market has seen an improved sentiment since August 9. That came after the US CPI updates, which turned out later on August 10.
Moreover, analysts speculate that inflation peaked in June because of the cooling supply-chain problems and gas prices. A New York Fed survey this week observed optimistic consumer sentiment since June.
CNBC trusts that inflation will run at a 6.2% speed in the coming year and 3.2% yearly for the upcoming three years. That represents a massive plunge from the June survey’s 6.8% and 3.6% forecasts, respectively.
Time to Back-Pedal?
Amid everything is the leading alt, Ethereum, which noted declines since August 9 before surging today. The altcoin broke the $1.7K level to explore $1,687 (Coinmarketcap data). Though the current trend remains upside, some analysts trusts sentiment might shift soon.
Glassnode discovered that perpetual futures contract open interest hit new lows on Kraken. It hit 19-month lows at $12.09M on August 10, with the past low emerging on August 7.
Declines futures contract’s interest might indicate that near-term bettors aren’t optimistic about the overall market conditions. Nevertheless, this category usually tends to shift actions within no time, based on overall sentiment.
Rising from Below
Nevertheless, some indicators confirm surging optimism within the ETH community. The latest report suggested that the exchange withdrawals count has hit 18-months lows at 1,810.2. Removing holdings from crypto exchanges usually signals bullishness for the assets.
Furthermore, the latest report by CoinShares discovered that institutions scooped Ethereum-based money for seven consecutive weeks. Also, Asset manager Grayscale revealed plans to introduce staking for traders soon.
Nevertheless, risks related to the staking-associated rewards remain a massive obstruction. Grayscale tweeted that it currently does not stake assets though its team has analyzed solutions that might allow investors to gain staking-related rewards exposure while alleviating risks.
The inflation data could have deteriorated near-term investor sentiment in Ethereum. Nevertheless, the altcoin sees a bright future with the much-anticipated Merge, which promises massive revenues for market players.
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