Positive momentum comes despite BLS announcement that CPI in the USA had reached new 40-year high
The past 7 days have been solid for bitcoin, out-performing the major stock indices with a 10% week-on-week price appreciation to $21.8k. Positive momentum comes despite the US BLS' announcement last week that CPI in the USA had reached 9.1% for June — a new 40-year high — as markets warm up to a more sanguine outlook for global economic growth. Talk of 100 basis point Fed rate hikes and anticipation of the ECB first rate increases in 11 years will remind investors that there's a long way to go until normal service is resumed, although optimism reflects a growing sense that extreme monetary policy manoeuvres are priced into expectations.
One notable performer in the crypto-universe is ether. The digital currency, once down 80% from its all-time high, has rallied almost 30% in the past week ahead of its potentially-imminent merger of its mainnet to its PoS testnet.
Prolonged depressed earnings are continuing to test miners' resolves and a growing number are selling off assets and curtailing operations. The 14-day moving average network hashrate is down to 196 EH/s — below 200 EH/s for the first time since March — representing a 13% fall from its mid-May peak. Difficulty is set for its 3rd successive downwards adjustment later this week, expected to be a 12-month high 5.8%, from 29.2T to 27.5T. Sliding difficulty and a slight rebound in bitcoin price has helped prop up hash price, currently hovering just below $0.10 and up almost 25% from mid-June's low.