Experts outline the best crypto assets during crypto winter

Cryptocurrency markets are in the broadest green after a prolonged bearish market trend. The event follows the positive CPI (Consumer Price Index) report released by the US Bureau of Labor Statistics in July. The announcement became a major driver for Bitcoin and Ethereum prices.

According to past reports, the CPI through July fell less than expected by 8.5%. However, this does not appear to have a positive effect on underlying inflation.To that end, experts are now expressing concern about their thinking sticky inflation.

Michael Ashton, managing director of Enduring Investments LLC, revealed what he believes to be the decline in CPI.

According to Ashton, the important factor contributing to the decline in CPI is flexible items. Some examples of such flexible items are clothing and airline tickets, he said.

However, he added that some tricky areas of the economy would not be affected. For example, the prices of certain sticky parts of the economy, such as rent, will continue to rise regardless of the decline in the CPI.

He further stated that the sticky inflation index will continue to accelerate. In addition, he added that inflation in the U.S. economy will not stop anytime soon.

The impact of inflation on cryptoassets

At present, the digital currency industry is experiencing a strong rebound. This is the impact of a positive CPI (Consumer Price Index) report.

Additionally, many altcoins, including Bitcoin and Ethereum, are hitting new highs after a prolonged period of bearish price action. Bitcoin is currently trading below $24,000.

Bitcoin falls below $24,000 on the chart l Source: BTCUSDT on TradingView.com

Meanwhile, Ethereum is trending below $1,900. This is the result of stable market sentiment in the industry.

U.S. Bureau of Labor Statistics at a Glance

The Consumer Price Index is an effective indicator that provides accurate information about the state of inflation in the U.S. economy. The U.S. agency responsible for CPI reporting is the U.S. Bureau of Labor Statistics. Typically, the department provides monthly CPI reports.

Meanwhile, the department that controls the country’s high inflation is the Federal Reserve. The group achieved its goals by raising interest rates and quantitative tightening.

The June report mentioned the fall in cryptocurrencies and a severely aggressive Federal Reserve due to excessive CPI inflation. It also brought BTC to one of its worst states at the time. Also, the stock market was not excluded during this period, as many stocks fell at different prices.

Therefore, Ashton warned crypto investors that investing in digital currencies is not currently recommended. This is due to the insecurity of inflation hedges.

To this end, he advises investors to choose tangible assets. He cited examples of physical assets: real estate, agriculture, precious metals and energy.

Featured image from Pixabay, Charts from TradingView.com

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