The consumer price index saw rapid inflation last week with the US recording a 5.4% increase in consumer prices. It far exceeds the Fed’s target of 2%. It is the highest level recorded since 2008 when the global economy was suffering from a financial crisis. However, what seems to be surprising is the lack of any response from professional investors.
With such high market conditions, companies are showing a clear lack of interest in cryptocurrencies, or is it just Bitcoin?
Bitcoin has been consistently falling after reaching its record high of just over $64,000, which lead to poorly constructed stories suggesting the possibility of declining popularity amongst investors in the crypto market.
Venture capitalist funds
The first half of 2021 saw an increase in the number of investments made in blockchain and crypto-focused companies. While every industry saw a rapid increase in venture capital funding, however, blockchain and crypto-assets-related startups saw a sharp increase of 5.9% during the first half of 2021.
The figures show a stark comparison with the latter half of 2020 which recorded investments of just over 0.88%.
Circle goes public
Circle recently announced its plans to merge with Concord Acquisition, a special purpose acquisition company (SPAC), and file for IPO. The merger may seem small, but it might clear the fog surrounding the regulations on stablecoins in the US. This will in turn have a huge influence on the crypto-asset market.
The circle is responsible for creating USDC, a digital stablecoin pegged against the US dollar. USDC is the second-largest stablecoin in terms of market capitalization after Tether (USDT).
Jeremy Allaire, Co-Founder, Chairman and CEO of USDC wrote:
“Circle intends to become the most public and transparent operator of full-reserve stablecoins in the market today. With upcoming public filings and new USDC reserve attestations, our intention is to provide a detailed summary of USDC reserves. Not only will all of Circle’s overall financial accounts be held to the highest standards of accountability, but ultimately all of these public disclosures will be held to the standards of the top financial regulator in the United States, the SEC.”
The listing will offer a clear stance around stablecoins in the United States.
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