Author: @madridbg, through Power Point 2010, using public domain images. Gerd Altmann
Greetings and welcome dear user of this prestigious platform especially to all those who make daily life in the community of @Leofinance, the topic that concerns us in this opportunity, is related to an analysis that allows us to understand the way in which the decrease in the inflation rate in the United States has influenced the cryptocurrency market.
In this sense, for no one it is a secret that the generalized markets have entered a substantial depreciation process, product of the different international events that have been occurring and even more of the possible recession that is in the limelight of the US government, assumed by the excessive increase in the interest rate so far in 2022 and that is nothing more than an imminent response of that growing impression that was made on fiat money, to mitigate the substantial damages that were created and developed from the pandemic.
So the scenario at the U.S. level was not at all encouraging, however, the month of July could present a deceleration of the inflationary index, which was expected to exceed 9.5%; this would undoubtedly hit the pockets of the inhabitants of this country hard.
However, thanks to the fall in fuel and energy prices, inflation slowed down to 8.5%, which represents a substantial advance in economic matters and consequently allowed the monthly consumer price index to remain at zero, generating a positive reaction on Wall Street, which has had a positive impact on the different economic indexes, as well as on the world of cryptocurrencies.
Thus, the day associated with the stock market and which opened at the beginning of the week presented an increase of 1.4%, a figure very much on par with the rest of the indexes that were moving in a range between 1.50% and 1.90% specifically.
Now, if we extrapolate the information shared above to the crypto market, we can observe that at the beginning of the week, based on the release of the official inflation figures for the United States, the crypto market, specifically Bitcoin, had a positive reaction, which has allowed it to generate an increase of more than 5.8% since Monday, which has been reflected in the behavior of the rest of the cryptocurrencies.
In this sense, we can determine that there is a clear correlation between the traditional economic system and the behavior of cryptoassets, so that the technical analysis cannot be executed independently, since this correlation has been occurring at different times and consequently the technical analysis is directly influenced by the fundamental analysis and the events that are occurring at the international level.
Public domain image. Author: tradingview
Undoubtedly, volatility within the cryptocurrency market is crucial, but this in turn continues to be influenced or somewhat manipulated by external markets.
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