April 14, 2022
By Anjali Kochhar
The cryptocurrency market continued to zoom for the second consecutive day. This comes as top coins surge amid rising inflation in the United States.
The global market cap rose 2.59% to $1.91 trillion, as of 4.17 p.m IST, CoinMarketCap data showed.
Bitcoin rose 3.04% to $41,123. Ethereum, too, surged to $3094.
Wazir X’s daily analysis predicted that Ethereum would continue to outperform BTC for a few weeks in succession considering that the top token’s Proof-of-Stake (PoS) has been successfully tested by developers in the form of the mainnet “shadow fork,” a mechanism to stress test the thesis.
Barring a slight downward movement in Tether, all other top 10 tokens continued to rise. Meme cryptos Shiba Inu and Dogecoin too surged.
This, according to industry insiders, should be attributed to rising inflation in the US.
“Bitcoin and other cryptos may be considered as a hedge against the rising inflation, by long-term investors considering the deflationary nature of the crypto tokens,” the WazirX research team told Blockchain Asset Review.
Dileep Seinberg, Founder & CEO, MuffinPay, said, “When inflation happens, people tend to invest in gold and they do not like to sell the important assets. Bitcoin Maximalists strongly believe that Bitcoin has no correlation with other business trade forces. Although it does impact cryptos with different regulations as well.”
“Right now people are holding Crypto Asset investments like Bitcoin, ETH and other assets, that tend to create more stability, but it needs to check 45 days cycle before we can say crypto is going green again.”
On the rising momentum of the market, CoinDCX said, “With most leading digital currencies jumping back into the greens, it is clear that crypto has a strengthening relationship with the traditional market, with performances moving in tandem with each other—an indication of the maturing digital asset sector. As the industry continues to develop, there is no doubt that crypto is shaping up to be a respected asset class in today’s finance.”
Besides inflation, there could be other factors impacting the market as well.
Cryptocurrency lender Nexo has partnered with Mastercard to launch what it calls the world’s first “crypto-backed” payment card. The card can be used at 92 million merchants worldwide where Mastercard is accepted.
Fidelity National Information Services has partnered with crypto custody platform Fireblocks to provide digital asset services for its capital markets clients.
At the same time, one should not forget that the crypto market is extremely volatile and the surge in prices shouldn’t be considered a parameter to invest.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.