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Thursday, March 30, 2023

Setback for cryptocurrencies: they fall again after bad signals from the US and Europe

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In the rest of the market, there are falls of up to 4% in the top 10 cryptocurrencies led by Polygon (MATIC), Cardano (ADA) and Dogecoin (DOGE).

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According to experts, the crypto leader is stagnant. Lex Sokolin, director of cryptoeconomics at ConsenSys, believes that the cause is none other than persistently high inflation, in the world in general and in the United States in particular. Both BTC and ETH, the two main ‘tokens’ in the market, rose 40%, but lost the momentum with which they began the year after a battery of negative macroeconomic data and the consequent Lack of optimism from investors.

“I don’t see any dramatic change. We still have stubborn inflation and central banks have committed to raising rates until inflation cools further. That means Tech stocks and crypto assets will continue to trade at suppressed multiples and the housing market is in jeopardy”, Sokolin explained to the medium ‘CoinDesk’.

Europe data

In Europe, the February inflation data has not been particularly positive.

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In Europe, inflation data for February have not been particularly positive. And in the US things are no better: the economy is showing a contraction in some sectors.

“The slowdown in economic growth This is not bad news for the Federal Reserve (Fed), but the increasing pressure on prices is.. This is what the report revealed yesterday,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

As if that were not enough, the Fed bankers continue to make it clear that interest rate hikes can return to 50 basis points after slowing down at the beginning of February.

Source: Ambito

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