Hedera, Fantom, XRP, Filecoin prices rise as US inflation dips

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Hedera, Fantom, XRP, Filecoin prices rise as US inflation dips

By Crispus Nyaga - min read
  • The headline consumer price index dropped to 4.0% in May.

  • The data came as the FOMC prepares to conduct its June meeting.

  • Economists expect that the bank will leave interest rates unchanged.

Altcoin prices jumped on Tuesday after the US published encouraging consumer inflation data. Hedera Hashgraph price has jumped by about 4% in the past 24 hours. Similarly, other altcoins like Fantom, XRP, Filecoin, and Uniswap have jumped by over 4% in the past 24 hours.

US inflation retreats

Bitcoin and other cryptocurrencies have jumped in the past few hours after the encouraging US consumer price index data. According to the Bureau of Labor Statistics (BLS), the headline consumer price inflation dropped from 4.9% in April to 4.0% in May. This was a bigger decline than what analysts were expecting. It was also the biggest decline in several months.

These numbers are important because they came on the same day that the Federal Open Market Committee (FOMC) is set to start its two-day meeting. As a result, the committee will be comfortable to leave interest rates unchanged at 5.25%. It has delivered interest rate hikes in the past ten meetings straight.

A Fed pause and an eventual pivot will be good news for risky assets like cryptocurrencies and stocks. This explains why the stock-focused fear and greed index has jumped while key indices like the Dow Jones and Nasdaq 100 have gained by double-digits this year.

Regulatory concerns remain

For cryptocurrencies like Hedera Hashgraph, Filecoin, Fantom, and XRP, these inflation numbers are welcome. However, the biggest risk in the crypto industry is that regulators in the US and the UK have gone to war with these assets. 

Last week, the SEC filed a major lawsuit against Binance and Changpeng Zhao. On the following day, the agency filed another one against Coinbase, the biggest exchange in the United States. A common allegation in the lawsuit is that they offer unregulated products.

Some of these unregulated products are proof-of-stake tokens that have a yield element. The SEC has already sued Ripple alleging that it is an unregulated cryptocurrency. It has also identified several tokens it believes are securities.

As a result, we could see exchanges that serve American customers start delisting these tokens, which could hurt many of them.