Several BAYC and CryptoPunks collectors who put up their tokens as collateral backing for Ethereum loans have been unable to settle their dues. Crypto analysts believe this could mark the onset of the first major liquidation crisis in the NFT industry. BendDAO Loans and Possible Risks Rumors of a liquidation spiral began earlier this week following a post about NFT lending platform BendDAO. BendDAO is a web3 protocol that allows users to take out loans in Ethereum using their non-fungible…
The US Consumer Price Index (CPI) increased by 1.3% in June, ramping up speed from May’s 1.0% increase. This brings annual CPI up from 8.6% to 9.1%, breaking yet another 40-year high.
- As the Bureau of Labor Statistics reported on Wednesday, June experienced a “broad-based” price increase across gasoline, shelter, and food alike.
- Specifically, the energy index rose by 7.5% – up from 3.9% in May. This alone accounted for half of the all items index increase.
- Meanwhile, the food and food at home indexes each rose by 1.0%. Broken down, 5 out of 6 major grocery store food indexes rose in June, with flour up by 5.3%.
- The all items index minus food and energy – which are considered highly volatile – rose by 0.7% in June. Over the last 12 months, it’s up by 5.7%.
- Bitcoin’s price did not respond kindly to the news. After touching $20,000 prior to the release, it quickly collapsed to $19,410 when the figure dropped. Its price rests at $19,091 at the time of writing.
- This may seem counter-intuitive to certain Bitcoin evangelists that view the asset as a next-generation inflation hedge. In practice, Bitcoin and cryptocurrencies have closely correlated with tech stocks over the past year.
- The equities markets started sliding yesterday ahead of Wednesday’s inflation report, which was expected to show elevated numbers.
- The continued rise of inflation likely means further hawkish monetary policy from the Federal Reserve. Chairman Jerome Powell stated last month that the central bank would not lower its benchmark interest rate until there is “compelling evidence” that inflation is coming down.