We continue to see that we live in strange times, because that is exactly the state of affairs. Last week’s crypto market reflects that. This week the crypto news was mainly dominated by Bitcoin, Ripple, XRP and the lawsuit with the SEC, Terra and a bizarre high inflation in the Netherlands and Europe.
Inflation record
Let’s start with inflation. In the Netherlands, it reached 17.1% in September compared to the same month last year! This has not happened since inflation is measured with the CPI. And Europe in general was not in much better shape.
Meanwhile, the US Federal Reserve wants to reduce inflation to 2%. All together can lead to a nasty cocktail for financial markets and cryptocurrencies.
Bad news for Bitcoin
Meanwhile, we have bad news for Bitcoin (BTC). Not only because of inflation, but also because the price is still eerily close to the last support line. If this breaks, the price can fall sharply. A well-known analyst expects that we will first fall hard before we see green prices again.
On-chain data confirms this: some coins that have been stored in cold storage for more than a decade have now been moved to other wallets. That indicates there is a good reason to move them. That can be to a more secure wallet, but also to an exchange. In any case, there will be a reason to move them, and with the falling prices in mind, it might just come down to high net worth hodlers selling. In total, it was about 510 BTC earlier this week.
Ripple Makes Profit in Lawsuit, XRP Rises
During all falling prices, XRP actually rises. That seems to have to do with the lawsuit with the US Securities and Exchange Commission (SEC). The SEC has to show certain documents to the judge that could be very beneficial to Ripple.
But be careful not to invest in XRP because of a Simpsons prediction, because it doesn’t exist. The image floating around is fake.
Terra’s Do Kwon has disappeared without a trace
Terra (LUNA) and Luna Classic (LUNC) were very popular last week, but this week was more mixed. The price seems to be reaching a peak. Meanwhile, Binance still sees bread in the Luna Classic. This exchange has decided to eliminate trading fees to help reduce supply. In theory, that’s good for the LUNC price.
In addition, a criminal investigation into Terra co-founder Do Kwon and five of his colleagues is still ongoing. But the South Korean police report that he does not want to come forward. According to Interpol, the man has even disappeared without a trace, which is why he has been placed on Interpol’s wanted list.