Despite the increase in the U.S. inflation rate to 9.10%, a multi-year high; the cryptocurrency market capitalization has reclaimed its trillion-dollar status; doing so in the face of worrying macroeconomic data and contractionary monetary policies seen worldwide.
We are seeing significant rallies in the Altcoin market, particularly Ether, the second largest token by market capitalization. Leading the charge because of the announcement of an update, “The Merge” mainnet upgrade. Which has been scheduled to launch on the 19th of September 2022. This upgrade is part of the final steps for the Ethereum blockchain to move from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) mechanism.
The bullish week we are seeing in the crypto market largely tracks a positive rally in the traditional markets. Which are up modestly despite analyst estimates that the Federal Reserve intends to raise interest rates by at least 75 basis points at the Federal Open Market Committee meeting on July 27. Major U.S. indexes like the tech-dominated NASDAQ, the DOW and the S&P 500, are up over 2% for the week.