- Stablecoin deposits reach All-Times-Highs despite CPI volatility.
- FED chairman Jerome Powell mentions another interest rate hike of 50 bps.
- LTH SOPR rose, allowing long-term BTC holders to sell for profit.
According to blockchain analytics company CryptoQuant, the number of currency addresses depositing Stablecoins on derivative exchanges has reached a record high (ATH). This increase happened despite the consumer price index’s (CPI) volatility only rising by 0.1% last month. It hovered around 0.4% in September.
CryptoQuant analyst Woo Minkyu remarked,
It would be indicating that buying pressure is getting stronger than ever or more investors are getting involved in derivative trades.
Additionally, the FED chairman Jerome Powell acknowledged another rate hike of 50 bps in the final Federal Reserve meeting of the year, saying:
The ultimate level of rates will need to be somewhat higher than thought at the time of the September meeting in the summary of economic projections.
Past bear crypto and financial markets have often been caused by Federal Open Market Committee. The FMOC’s most recent meeting on Dec 13 and 14 triggered another price crash.
Analytics firm CoinMarketCap showed a drop of $64 billion in the crypto market cap after the FMOC meeting, falling to $806 billion from $870 billion before the meeting.
However, a twitter user posted that despite growing investor fears, the Long Term Holder Spent Output Profit Ratio rose. Consequently, long-term owners of BTC have been able to liquidate their assets for a profit. BTC is presently trading at $16,767, down by nearly two percent in the past week.
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