The price rally for the majority of cryptocurrencies did not subside in trading Thursday (12/8/2021) morning Indonesian time, amid the moderate growth of United States (US) inflation in July 2021.
[img: Ripple Currency illustration . (Doc: Freepik)]
Based on data from CoinMarketCap at 09:15 WIB, the six largest non-stablecoin cap cryptos are still brightly excited this morning.
Bitcoin rose 0.33% to a price level of US$ 46,014.41/coin or equivalent to Rp. 661,227,072/coin (assuming an exchange rate of Rp. 14,370/US$), ethereum increased 1.82% to a level of US$ 3,231.66/coin (Rp 46,438,954/koin), binance coin jumped to US$ 403.84/coin (Rp 5,803,181/coin).
Furthermore, cardano appreciated 7.21% to a price position of US$ 1.84/coin or equivalent to Rp. 26,441/koin, ripple skyrocketed by 17.7% to US$ 1.03/coin (Rp 14,801/coin), and flying dogecoin. 9.51% to US$ 0.2868/coin (Rp 4,121/coin).
US inflation as reflected in the consumer price index (CPI) as of July rose 5.4% (yoy), or slightly above economists forecast in a Dow Jones survey of 5.3%. Monthly inflation at the level of 0.5% or according to market expectations.
Even though US inflation data has increased moderately, this figure is still likely to be high compared to the period last year.
On the other hand, the US Senate succeeded in passing a bill (RUU) for an infrastructure package worth US $ 1 trillion, which includes the imposition of taxes and certain restrictions on the cryptocurrency sector. However, some analysts think that investors do not really care about the bill.
The passage of a $1 trillion infrastructure bill by the U.S. Senate this week is seen as burdensome for the cryptocurrency industry. But this certainly does not make the bitcoin price rally stop just like that, where the bitcoin rally has reached 60% over the last few weeks.
Perhaps that's because the latest move by lawmakers in the world's largest economy illustrates how little top officials are willing to curb rising spending and has fueled the rise in US government debt to an unprecedented level of more than $US. 28 trillion.
Crypto traders may bet that extra spending could spur inflation and potentially strengthen bitcoin's appeal as a 'bulwark' against a falling dollar.
The US central bank (Federal Reserve/The Fed) has created trillions of dollars in the aftermath of the coronavirus (Covid-19) pandemic to help absorb additional US Treasury borrowing.
The central bank's Treasury bond holdings have increased by about $3 trillion since early 2020, to $5.3 trillion last week.
So it can be said, investors in crypto are more worried about rising inflation compared to the unclear crypto rules in the Infrastructure Bill.
Even so, currently some analysts remain optimistic about the price of bitcoin going forward, even though regulatory uncertainty in the United States (US) regarding crypto tax rules still overshadows the sentiment of the crypto price rate.
The crypto sector itself is still relatively new, where crypto is based on its nascent technology industry, but with the crypto tax, it could hinder its growth as said by Lucia della Ventura, a researcher at Trinity College Dublin and legal compliance manager at the firm. Ledgermatic financial software, quoted from CoinDesk.