Happy Tuesday, Blockfolians
Well, the latest CPI numbers are out, and they’re not pretty. Inflation rose 0.9% month over month and 5.4% year over year. This was higher than surveys of economists expected.
The Fed, for their part, continues to say that inflation is transitory. The numbers are high yes, but they reflect both base effects (i.e. think about what was happening exactly 1 year ago) and temporary dislocations as demand comes back online.
Others are less sure.
For our money, Meltem has the best take:
cost of living (CPI) is up 5.4% year over year, with June alone seeing a 0.9% increase
median price to buy a home (case shiller index) is up 23% year over year
wage growth is up 3.7%
returns to labor < returns to capital
and you ask why everyone is becoming an investor
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Highly Relevant Reading
BNY Mellon is working with Grayscale on ETF conversion
Goldman Sachs calls Coinbase a “tactical trade”
S&P Dow Jones launches 5 more crypto indexes
Chinese miner BIT Mining raises $50m to relocate out of China
An interesting discussion in Uniswap world
Looks like Larry Sukernik, one of the multi signers behind the $20M DeFi education fund, dumped UNI five hours before the $10M OTC sale.
So, what happens next?
It’s official (see shaded orange), Bitcoin is entering its first major volatility squeeze since the one that pushed price down off ATHs in April and the one that propelled us into the bull run in July 2020.
Not a common occurrence.
A Really Big Number We Should Be Paying Attention To
That’s the amount of crypto the UK just seized