Litecoin LTC/USD is trading lower by some 2.52% to $94.60 going into the close of U.S. trading Wednesday, according to data from Benzinga Pro. Several altcoins are lower as stocks across sectors rise following a lighter-than-expected June inflation report.
Cryptocurrencies like Litecoin are often considered as potential hedges against inflation. They are decentralized, limited in supply and not subject to government control or traditional monetary policies. When inflation is lower than expected, the perceived need for inflation hedging decreases.
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Investors may shift their focus away from cryptocurrencies like Litecoin and allocate their funds towards other assets that traditionally serve as inflation hedges, such as gold or real estate. This reduced demand for Litecoin can lead to a decline in its price.
What Happened?
U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics' data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.
This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021...Read More
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