The US published encouraging statistics on consumer inflation on Tuesday, causing altcoin prices to jump. Bitcoin experienced a 4% surge in the last 24 hours, with other major altcoins like Fantom, XRP, Filecoin, and Uniswap similarly increasing by over 4%.
The headline inflation rate for consumer prices dropped from 4.9% to 3.8% in April and 4.0% in May – a larger decline than analysts predicted. This was the largest drop in weeks and came on the same date as the Federal Open Market Committee’s (FOMC) two-day session. This will likely lead to the bank leaving interest rates unchanged at 5.25%.
The news has been welcomed by the crypto industry, although the biggest risk comes from the US, UK and other country’s regulators targeting these assets. The SEC has filed a lawsuit against Binance and Changpeng Zhao, and against Coinbase, the largest exchange in the US. Many of the lawsuits allege that the defendants offer unregulated products, such as Proof-of-Stake tokens. The SEC has also filed against Ripple, claiming that the cryptocurrency is unregulated.
If American customers start delisting tokens, this could have a damaging effect on the industry. However, we could also witness exchanges which serve as a benefit.
