• The National Institute of Statistics and Census of Argentina released February’s numbers for the consumer price index (CPI), registering an increase of 6.6%.
• Inflation reached record yearly levels, with prices rising 102.5% YoY, the highest number in more than 30 years.
• Local economists have expressed their worries about the acceleration of prices in the country, calling for changes in the economic policies of the government of Alberto Fernandez.
Record CPI Levels in Argentina
The National Institute of Statistics and Census of Argentina released February’s numbers for the consumer price index (CPI), registering an increase of 6.6%, a consequence of the rises in prices of food and beverages principally. The number is among the highest in the history of Argentina, reaching more than 100% growth year-on-year (YoY), something that has alarmed local analysts.
High Yearly Inflation Rates
Inflation reached record yearly levels, with prices rising 102.5% YoY, which is higher than what was registered in January and it is also the highest number recorded within 30 years or more. It is expected that there will be an acceleration come March making it hard for to reach its goal set by itself: to control inflation below 100%. This makes Argentina have one off he second highest inflation rate after Venezuela with 155.8%.
Economic Worries from Local Economists
Local economists have expressed their worries about the acceleration of prices in the country, calling for changes in the economic policies put forward by president Alberto Fernandez’s government. These measures were set up since October 2020 but unfortunately it did not achieve its desired purpose as Martin Vauthier from Anker Latam mentioned “A stabilization program is required with a strong fiscal component, an exchange rate consistent with accumulation reserves and a consistent monetary policy that serves to reverse expectations and rebuild demand for money” while Santiago Manoukian from Ecolatina added “The main concern is that rise was driven by food and beverages having a greater impact on consumption basket if poorest households” .
Price Fixing To Avoid Constant Repricing
The rise in prices has made some retailers change their methods to fix prices according to U.S dollars so as to avoid constant repricing which can be very damaging when dealing with frequent changes like those happening right now due to inflation surge in Argentina .
To conclude , The National Institute Of Statistics And Census Of Argentina Released February’s Numbers For The Consumer Price Index Showing A Rise Of 6.6%. This Is Caused By A Hike In Prices Of Food And Beverages Which Has Led To Record Yearly Levels Reaching More Than 100% Growth Year On Year . This Has Alarmed Economists Who Are Calling For Changes In Economic Policies Set Up By President Alberto Fernandez’s Government As Well As Retailers Who Have Been Forced To Fix Prices According To U.S Dollars To Avoid Constant Repricing
• Polygon (MATIC) and Solana (SOL) have dropped to their lowest points since January as the global market cap has declined by 1.46%.
• The relative strength index (RSI) of 14 days for both MATIC/USD and SOL/USD have fallen to long-term floors, with bulls attempting to buy the dip.
• Bitcoin, Ethereum are also down following Silvergate liquidation announcement.
Crypto Markets Bearish
The overall sentiment in crypto markets remained bearish on Thursday as the global market cap fell by 1.46% as of writing. Two tokens, Polygon (MATIC) and Solana (SOL), also fell to their lowest point since January earlier in today’s session.
Thursday saw polygon fall to its weakest point since January, with MATIC/USD dropping from a high of $1.11 to a bottom at $1.04 earlier in today’s session. The last time polygon traded at this level was back on January 26, which is the last time price was under $1.00. Looking at the chart, this comes as the RSI of 14 days fell to a long-term floor at 35.00 As of writing, bulls have moved in to buy the earlier dip, and MATIC is trading at $1.07 agains USDT
Solana also slipped on Thursday, moving near a two-month low with SOL/USD finding a bottom at $18.20 after residing at a high of $19.33 yesterday . Prices are now down by over 15% in the past week and its RSI is now tracking at 33.96 – its weakest reading since the start of 2021 – however it appears that there may be some support around 18$ mark for SOL/USD for now .
Bitcoin & Ethereum
Bitcoin & Ethereum were also affected by bearish sentiment following Silvergate liquidation announcement as BTC moves to fresh multi-week low . BTC currently trades down 5% from yesterday , while ETH trades flat against USDT .
Overall , Crypto markets remain bearish with key tokens like POLY & SOL hitting multi month lows while BTC & ETH remain unfazed so far due to liquidation news .
• Chainalysis reported on the one-year anniversary of the Russian invasion in Ukraine that almost $70 million has been donated to addresses published by the Ukrainian government.
• Ether was the most donated crypto followed by bitcoin and stablecoin tether. The total amount of cryptocurrency transferred to Ukrainian government addresses is over $212 million.
• 87.3% of donations to pro-Russian groups were sent to mainstream, centralized exchanges instead of high-risk ones.
Crypto Donations for Ukraine
Chainalysis reported that nearly $70 million has been donated to addresses published by the Ukrainian government since the start of the Russian invasion in late February 2022. Ether was the most donated crypto followed by bitcoin and stablecoin tether, while donations from across the globe have amounted to over $212 million.
Donations Make an Impact
The blockchain intelligence firm noted that not only are these donations helping with military efforts but they can also encourage crypto adoption and strengthen the war-hit Ukrainian economy. Adoption by Ukraine surged over the course of war, ranking third in its 2022 Global Crypto Adoption Index, while Russian adoption declined despite soliciting crypto donations as well.
Pro-Russian Groups Receive Donations
Chainalysis said that more than 100 pro-Russian groups are now accepting crypto funding for their activities, although they have collected less than $5.4 million combined so far. Interestingly, most funds sent to these groups have gone towards mainstream, centralized exchanges instead of high-risk ones – 87.3%.
Cryptocurrency Philanthropy Across Globe
The report highlighted that cryptocurrencies can be used as a tool for philanthropy across borders and demonstrate global support for a nation or cause during times of need or conflict – something which fiat currencies cannot do as easily or quickly owing to international banking regulations and restrictions imposed by governments across countries..
Encouraging Crypto Adoption Worldwide
Furthermore, donating cryptocurrencies instead of fiat currency allows people from all parts of world access digital funds without having access to traditional banking services or credit cards – providing wider reach for those donating money on a global scale – thus encouraging broader crypto adoption worldwide .