Bitcoin Holds Steady Amidst Mixed Inflation Signals

The U.S. Consumer Price Index (CPI) rose 3.7% year-over-year in August, slightly higher than the 3.6% forecast by economists.

Core inflation, which excludes the volatile costs of energy and food, continued to trend downward, recording a year-over-year increase of 4.3%, down from 4.7% last month.

These contrasting figures can largely be attributed to rising oil prices, which have now reached a 10-month high. There's growing concern that the supply of crude oil will continue to dwindle, with OPEC+ signaling a continuation of their voluntary production cuts for the rest of the year.

So, what does all this mean? Well, it's a mixed bag for the markets. On one hand, rising oil prices are going to put pressure on the cost of consumer goods.

On the other hand, the decline in core inflation is a silver lining, especially since that's the metric the Fed primarily uses to inform its monetary policy.

Bitcoin's Tipping Point: Will It Hold Above $25,000?

As underscored in last week's letter, the crypto market is currently in a state of apathy. To add to this, both Bitcoin and certain niche crypto assets, notably SOL, experienced a downturn earlier this week following news that FTX might soon offload its $3.4 billion digital asset holdings.

However, my outlook remains optimistic. In other words, the prevailing negative narratives simply aren't compelling enough. Although Bitcoin momentarily dipped below $25,000, it has rebounded, even against a higher-than-anticipated CPI and amidst speculations of FTX's selling pressure.

Noteworthy Mentions

• The Current Landscape of Layer 1 And Layer 2 Blockchains

  Ethereum's Layer 1 and Layer 2 competitor’s have gained significant ground since DeFi’s hallmark debut in 2020. Today, multiple alternative blockchains outperform Ethereum in speed and cost. Our latest research offers a detailed overview of these evolving landscapes. For more detailed insights, here is the link to the full article.

Industry Shakers

• JPMorgan exploring blockchain-based payment and settlement system

  JPMorgan is reportedly exploring a blockchain-driven payment and clearing infrastructure. This envisioned digital payment system promises to enhance transaction velocity and reduce expenses. The deposit token will act as a digital replica of a client's deposits and will have the potential to facilitate interbank transfers or support tokenized securities settlements. However, its launch still depends on approval from U.S. regulatory bodies.

• G20 nations endorse IMF and FSB guidelines for crypto regulation

  G20 countries have moved closer to cryptocurrency regulation by approving frameworks presented by the IMF and the FSB. These joint guidelines, revealed on September 7 following a query from India's G20 leadership, provide comprehensive counsel for regulators. The aim is to address both macroeconomic and fiscal stability challenges emanating from activities and markets associated with crypto-assets, such as stablecoins and DeFi.

• Telegram integrates TON crypto wallet

  After almost three years since hinting at the development of a Web3 ecosystem, Telegram has introduced its cryptocurrency wallet. This feature was unveiled during the ongoing Token2049 event in Singapore. Created on the TON blockchain, this wallet can now be accessed by Telegram's global 800 million users. Following the announcement, Toncoin experienced a rise of approximately 7% in its value.