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Matrixports head of research and strategy suggests the industry will soon see layer 1 and other altcoins outperforming relative to Bitcoin. 6271 Total views 37 Total shares Listen to article 0:00 News Own this piece of history

Collect this article as an NFT Institutional investors are not giving up on crypto, with recent data pointing to as much as 85% of Bitcoin buying being the result of American institutional players, according to Matrixports chief strategist.

Markus Thielen, the head of research and strategy at the financial services firm, told Cointelegraph the evidence shows that institutions are not giving up on crypto and is an indicator that we might be entering a new crypto bull market now.

The data was shared in a Jan. 27 report from Matrixport, which suggests that it can be distinguished whether a digital asset is more favorable by retail or institutional investors at any given time based on whether that asset is performing well in the United States or Asian trading hours.

The report stated that if an asset that trades 24 hours performs well during U.S. trading hours, it indicates that U.S. institutions are buying it, while an asset that sees growth during Asian trading hours indicates that Asian retail investors are buying it.

The report cited that Bitcoin (BTC) is up 40% this year, with 35% of those returns occurring during U.S. trading hours, meaning there is an 85% contribution associated with U.S.-based investors, indicating that U.S. institutions are buyers of Bitcoin right now.

Bitcoin Fear and Greed Index is 55 – Greed
Current price: $23,033 pic.twitter.com/OAt0TakkZR Bitcoin Fear and Greed Index (@BitcoinFear) January 27, 2023

Thielen added that previous data shows that institutions typically first start buying Bitcoin before investing in other cryptocurrencies. He noted:If history is any guide, then we should see the outperformance of layer 1 and altcoins relative to Bitcoin.

While the report highlighted that news regarding other projects positively impacted token prices such as Lido DAO (LDO) and Aptos (APT), the crypto rally only started once the U.S. inflation data was released on Jan. 12.

It was also mentioned that Ether (ETH) appears to be performing well during U.S. hours, indicating institutional flows into the cryptocurrency, however, APT is doing well around the clock.Aptos is seeing a mix of strong returns during U.S. trading hours AND during Asia trading hours.

The report concluded that this should be a very positive sign for Bitcoin as institutional adoption continues.

Related:Data shows pro Bitcoin traders want to feel bullish, but the rally to $23K wasnt enough

In earlier comments to Cointelegraph, economist Lyn Alden believes that Bitcoin is currently playing a bit of catch-up, getting back to where it would have beenwithout the FTX collapse occurring.

Alden warned that there is considerable danger ahead for the second half of 2023, citing liquidity conditions being good right now partly because of the U.S. as a significant factor.

#Bitcoin is a Masterpiece. pic.twitter.com/2rhnCYlkW1 Michael Saylor?? (@saylor) January 25, 2023

Alden explained that as the U.S. Treasury is drawing down its cash balance to keep the countrys debt levels low, it pushes liquidity into the financial system.

Meanwhile, popular trader and market commentator TechDev posted aTwitter update on Jan. 26 showing the price correlation between Bitcoin and gold, stating that if Bitcoin continues to follow the price of gold, it might even crack the $50,000 mark. #Bitcoin #Cryptocurrencies #Bitcoin Price #Bitcoin Analysis #Adoption #Economy #United States #Tokens #Price Analysis #Trading Related News How to create an ERC token without coding, explained Creating self-sovereignty in the creator economy and Web3 Is there room for both? Erik Voorhees tips $40K BTC by June, but little consensus among pundits Celebs who got burned endorsing crypto and those that got away with it Macroeconomic data points toward intensifying pain for crypto investors in 2023

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Business

Inflation jumps to 3.6% on fuel and food price pressures

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Inflation jumps to 3.6% on fuel and food price pressures

The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.

The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.

That was up from the 3.4% rate seen the previous month. Economists had expected no change.

Money latest: What do inflation figures mean for rate cut prospects?

ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.

“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”

A key driver of food inflation has been meat prices.

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Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.

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Beef has seen the biggest percentage increase in meat costs. Pic: PA

High global demand alongside raised production costs have been blamed.

But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.

“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”

It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.

Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”

Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.

“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”

The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.

Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.

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Is the cost of living crisis over?

Most are still reeling from the effects of high energy bills.

The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.

Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.

The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.

The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.

That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.

Read more from Sky News:
Chancellor considering ‘changes’ to ISAs
Most important part of Reeves’s speech was what wasn’t said
HMRC doesn’t know how many billionaires pay tax in the UK

Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.

“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.

“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”

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Politics

Who will take the fall for the Afghan cover-up?

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Who will take the fall for the Afghan cover-up?

👉Listen to Politics at Sam and Anne’s on your podcast app👈 

Now details of the enormous accidental data breach by a British soldier that put thousands of Afghans’ lives at risk can be discussed publicly – Sam and Anne try to address some of the biggest questions on this episode.

They include:

Why did the government break the glass on using a superinjunction?

Has anyone been sacked?

Why did the Labour government keep the superinjunction in place for so long?

There’s still a bit of time to go over Rachel Reeves’ Mansion House speech. Did it reassure financiers and investors?

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World

‘My family is finished’: Afghan man in UK military data breach says he feels betrayed

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'My family is finished': Afghan man in UK military data breach says he feels betrayed

An Afghan man who worked for the British military has told Sky News he feels betrayed and has “completely lost (his) mind” after his identity was part of a massive data breach.

He told The World with Yalda Hakim about the moment he discovered he was among thousands of Afghans whose personal details were revealed, putting him at risk of reprisals from the Taliban.

The man, who spoke anonymously to Sky News from Afghanistan, says he worked with British forces for more than 10 years.

But now, he regrets working alongside those troops, who were first deployed to Afghanistan in 2001.

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Afghans being relocated after data breach

“I have done everything for the British forces … I regret that – why (did) I put my family in danger because of that? Is this is justice?

“We work for them, for [the] British, we help them. So now we are left behind, right now. And from today, I don’t know about my future.”

He described receiving an email warning him that his details had been revealed.

He said: “When I saw this one story… I completely lost my mind. I just thought… about my future… my family’s.

“I’ve got two kids. All my family are… in danger. Right now… I’m just completely lost.”

👉 Listen to Sky News Daily on your podcast app 👈

The mistake by the Ministry of Defence in early 2022 ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans.

On Tuesday, a court order – preventing the media reporting details of a secret relocation programme – was lifted.

Read more from Sky News:
Minister defends handling of breach
The struggle for equality in Afghanistan
Afghan women throw babies to troops

British soldiers wait to be transported to a base in the provincial capital Lashkar Gar in Camp Bastion, Helmand, February 5, 2010. REUTERS/Baris Atayman (AFGHANISTAN - Tags: MILITARY POLITICS CONFLICT)
Image:
Reuters file pic

Defence Secretary John Healey said about 6,900 Afghans and their family members have been relocated or were on their way to the UK under the previously secret scheme.

He said no one else from Afghanistan would be offered asylum, after a government review found little evidence of intent from the Taliban to seek retribution.

But the anonymous Afghan man who spoke to Sky News disputed this. He claimed the Taliban, who returned to power in 2021, were actively seeking people who worked with British forces.

“My family is finished,” he said. “I request… kindly request from the British government… the King… please evacuate us.

“Maybe tomorrow we will not be anymore. Please, please help us.”

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