© Provided by TheStreetAccording to analysts, the correlation between cryptocurrencies and stocks has weakened slightly, but remains positive.
Primary consumer prices have risen for the second time in a row.
In September, the core CPI is estimated to have risen 8.2% yoy, compared to the 8.3% pace recorded in August, but faster than the consensus forecast for the year, which rose 8.1%.
What will the market price of bitcoin be?
Bitcoin edged up slightly to 19,122.33 in afternoon trade on Oct. 13, according to data firm CoinGecko. Ether, a native currency on the Ethereum blockchain, is up nearly 1% to $1,268.49, while Dogecoin is up 1.3% to $0.058729.
“Cryptocurrency markets fell on the news that the consumer price index rose 8.2%. While this number is slightly lower than last month, it's still extremely high," said Frank Corva, senior digital asset analyst at Finder.
That's not good news for risky assets like cryptocurrencies in the short term, Korva explained, "because people have enough money to speculate in the nascent cryptocurrency market."
“However, with the US dollar and fiat currencies around the world losing significant purchasing power, the big question now is: will the market start valuing bitcoin more in terms of the currency's collapse? and less than hedging? A risky asset?”
Corva's September 2022 Invesco QQQ ETF ( QQQM ) is down about 13% and SPDR S&P 500 ETF Trust SPY is down 9.3%, while Bitcoin's price is down just 1.6%, according to Finder's BTC. price prediction report.
"This could be an indication that the market is starting to see bitcoin as more than a tech stock," he said.
The crypto-stock relationship
Cryptocurrencies have been correlated with the stock market, but Winston Ma, a managing partner at CloudTree Ventures, said cryptocurrencies have slipped slightly in recent weeks, although he remains bullish. .
"On the contrary, in the first half of 2022, the cryptocurrency market and public stock indexes mainly moved in high correlation," said Ma, "Blockchain and Web3: Building the Foundations of Cryptocurrency, Privacy and Security of the Metaverse."
“For example, over the past month, BTC has been mostly in the $19,000-$20,000 range as the Dow Jones and S&P 500 had their worst month since March 2020,” he said.
However, this seems to indicate that the cryptocurrency market is stronger than the public stock market as the threat of a downturn looms, he said.
"So the question is, will the two markets continue to move in tandem, or will they diverge?" churches. "Only time can tell."
NFT is under investigation
The Securities and Exchange Commission is reportedly investigating Yuga Labs and other NFT creators.
According to David Lesperance, immigration management partner and tax advisor at Lesperance & Associates, the study also looked at the spread of the Ethereum-based cryptocurrency Apecoin .
"As always, the key legal question is whether NFTs are securities." The answer is...if...it will have a dramatic impact on the entire cryptocurrency and NFT market.
Lesperance turned its attention to the bankruptcy of crypto lender Celsius Network, which filed for bankruptcy in July, another victim of the cryptocurrency market crash. The company stopped withdrawing customers in June.
It owes more than $4.5 billion to nearly 1.7 million Celsius customers and more than 100,000 creditors, according to the company's bankruptcy filing.
"To make matters worse, Celsius now recognizes that customers are revealing their identity and transaction history," Lesperance said. Because they are now creditors in Celsius' bankruptcy.
“Providing a list of creditors is common in bankruptcy filings, and in the absence of regulation, crypto customers are ordinary creditors who need to settle with others,” he said. .
"There are privacy laws for regulated financial institutions, but ... we see a 'lack of oversight,'" Lesperance said.
"This is another issue that regulators will be addressing in the near future," he said.