Cryptocurrencies, including Bitcoin, are on an upward trend ahead of the release of the US Consumer Price Index (CPI) on the 10th.
At 8:42 am on the 8th, Bitcoin, the top virtual asset by market capitalization, is trading at 30.69 million won, up 0.51% from the previous day’s closing price (as of 9:00 am on the 7th) on Upbit.
At the same time, Ethereum rose 0.18% to 2251,000 won.
Cryptocurrency prices were affected by local experts’ forecasts of a slight decline in the US CPI in July.
According to the Wall Street Journal (WSJ) on the 7th (local time), the US CPI rose 8.7% compared to the same period last year, which was slightly slower than the 9.1% increase in the previous month.
However, core CPI excluding energy and food, which is highly volatile, is expected to rise from 5.9% in the previous month, as it rose from the same period last year.
Accordingly, it is interpreted that cryptocurrency prices rose on expectations that the Federal Reserve (Fed) would be able to adjust the rate of interest rate hikes if the actual CPI slows.
In addition, Ethereum has risen 44.5% in the past month. During the same period, Bitcoin rose regarding 13%.
This is expected to be due to a change in the casting method that affects the price of Ethereum.
In the future, Ethereum will not require mining if the existing proof-of-work consensus mechanism is changed to proof-of-stake. As a result, the number of ethereum generated per day will be reduced from 12,000 ethereum to 1280 ethereum level.
If the casting method is changed in this way, the number of Ethereum mined decreases and the value rises, so the price of Ethereum rises.
On Bithumb, Bitcoin is trading at 30,671,000 won, up 0.24% from the previous day’s closing price (as of 00:00 on the 7th). Ethereum fell 0.35% to 2248,000 won.
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