Financial market rebounds after CPI announcement, bitcoin recovers to the $19,000 level at one point

Macroeconomics and financial markets

In the US NY stock market on the 12th, the Dow closed at $ 216 (0.6%) higher than the previous day.

The CPI (U.S. Consumer Price Index) announced by the U.S. Department of Labor at 22:30 on the 12th Japan time rose 6.5% from the same month last year, slowing down as expected by the market, leading to buybacks.

The core CPI index shows mixed results, such as a notable decline in gasoline prices and high service prices such as housing costs.

The CPI is a major index used by the US financial authorities as a measure of inflation (high prices). Growth has slowed for the sixth straight month, confirming the peaking out forecast, and the pace of interest rate hikes by the Fed (US Federal Reserve) will slow from 0.5% to 0.25% at the next US Federal Open Market Committee (FOMC) meeting. The view that it will be done has strengthened.

The Nikkei Stock Average (morning session) fell as the yen appreciated.

Relation:Financial market tankan on the morning of the 13th | CPI declining trend Cryptocurrency mining stocks skyrocketed Dollar yen plunged

Virtual currency market

In the crypto asset (virtual currency) market, bitcoin continued to rise to $18,828, up 3.4% from the previous day.

BTC/USD daily

Temporarily recovered to the $19,000 level.

In the derivatives market, loss cuts (forced liquidations) of $380 million in short positions occurred in 24 hours. It is above the 9th level.

coin glass

Justin Bennett (@JustinBennettFX) said he is testing the May 2021 trendline for the Dollar Index (DXY). Signs of a weakening dollar indicate that investors are moving into riskier assets such as stocks and bitcoin.

DXY/USD (Justin Bennett)

Relation:What is the “dollar index (dollar index)” that also pays attention to the virtual currency market?

Grayscale’s parent company, Digital Currency Group (DCG), which issues and manages bitcoin investment trusts (GBTC), may sell some of its assets as part of debt repayment. Financial Times reported.

Crypto lender Genesis owes more than $3 billion to creditors, according to a report in the newspaper.

According to the publicly available asset portfolio, it has invested in the largest exchanges in the United States, such as Coinbase and Silvergate. It is said that many assets with low liquidity are included in it, and it has been pointed out that it will take time to sell them, and there is also concern about the risk of spreading to investment trusts such as Grayscale’s Bitcoin Trust (GBTC).

Relation:Cryptocurrency giant DCG sells part of its assets

DCG’s Genesis Global Capital has fallen into a liquidity crisis following the FTX bankruptcy, and is in danger of bankruptcy, such as suspending the Earn program of its affiliated crypto asset exchange Gemini.

Gemini co-founder Cameron Winklevoss has accused DCG CEO Barry Silbert in a public book of “misrepresenting his ability to pay”. He is asking the board to remove him.

Meanwhile, the US SEC (Securities and Exchange Commission) sued Genesis and Gemini on the 12th for selling “unregistered securities” to individual investors through Gemini Earn. As of November 2010, it is said that 340,000 investors residing in the United States were covered.

Relation:SEC sues Gemini and Genesis for securities violations

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Special guests this time are Yat Siu, chairman of Animoka Brands, a major Web3 (decentralized web) company, and Benjamine Charbit of Darewise Entertainment. He talks about the current challenges of Web3 games and NFTs, Darewise’s first title “Life Beyond”, and the outlook for the industry.

Relation: To hold the 2nd “GM Radio”, guests are the chairman of Web3 major Animoka Brands

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