Inflation Concerns Continue As BTC Stalls And UNI Skyrockets

The UNI token by Uniswap garnered significant attention over a 24 hour period, skyrocketing by close to 80% following a proposal aimed at rewarding UNI holders with a share of the fees generated by the DEX. This proposal has been the focal point of the recent surge exhibited by Uniswap, marking a substantial development for the cryptocurrency.

In contrast, the price of Bitcoin has remained relatively stagnant, hovering around the $51,000 mark as market dynamics between bulls and bears persist. Despite attempts by bears to drive the price below $51K, buyers intervened, preventing a significant downturn.

BTC Declines As Altcoins Go Up

The dominance shown by Bitcoin in the market has slightly declined to 48.6%, indicative of a strengthening performance by several altcoins such as Ethereum and Cardano. The overall sentiment in the cryptocurrency market, as indicated by the fear and greed index, remains in the Greed territory, although it has slightly decreased compared to the previous day.

Among altcoins, the UNI token stands out with its remarkable surge, influencing other DEX-related tokens like dYdX and Quickswap to also experience notable gains. The proposal to alter the Uniswap protocol, transforming UNI into a token that generates yield for holders, has catalyzed this surge. In any case, it will be intriguing to observe how these trends unfold in the near future, especially amid broader economic considerations such as potential inflationary pressures.

Other Markets

Meanwhile, indications suggest that underlying US inflation likely experienced its most significant increase in a year in January, as indicated by the Federal Reserve. This underscores the arduous and erratic journey toward curbing inflationary pressures.

Specifically, the core personal consumption expenditures price index, excluding food and energy expenses, is anticipated to rise by 0.4% compared to the previous month. This would mark the second consecutive monthly acceleration in a metric that has largely trended downward over the past couple of years.

Elsewhere, longstanding concerns within the oil tanker industry regarding insufficient new ship constructions are resurfacing as a result of recent Houthi attacks on commercial shipping, causing widespread diversions in global petroleum trade routes. Only two new supertankers are scheduled to join the fleet in 2024, representing the lowest addition rate in nearly four decades and approximately 90% below the average annual rate for this millennium. However, as ship owners increasingly avoid the southern Red Sea, the lack of new capacity is beginning to have consequences: freight rates are experiencing sharp increases, and voyage durations are extending.