Here you can find out why increasing US inflation is important

• The Ethereum Prize has recovered in the past two days.

• Franklin Resources was the other company that applied for a Bitcoin ETF.

• The USA published strong figures for consumer fermentation.

ether The price rose the second day in a row, even after the USA published strong data on the consumer price index (VPI). The price jumped to a high of $ 1,595 and was a few points above the weekly low of $ 1,530. Overall, the coin fell by more than 25 % this year compared to the maximum.

Bitcoin ETF applications

After that, the Ethereum Prize recovered Franklin Templeton was the first major financial service company to request a spot bitcoin ETF. The other large Wall Street companies that did this are Blackrock, Investco, ARK Invest and Fidelity.

analysts believe that these companies have a higher chance of receiving approval for the laying down of these funds. On the one hand, these companies have introduced strict surveillance clauses to prevent market manipulations.

The most important thing is that the Securities and Exchange Commission (SEC) will probably want to avoid another embarrassing legal process. Two weeks ago, the regulatory authority suffered a severe blow Grayscale has won a large legal dispute in the USA.

A Bitcoin ETF is considered a positive factor for Ethereum, the second largest cryptocurrency in the world. If the SEC approves the fund, these companies will return with an ETF that reproduces Ethereum.

This explains why the tee of Grayscales Ethereum Trust (Ethhe) has recently reduced the net inventory value. ARK Invest, Cathie Wood's company, has also already applied for an Ethereum ETF.

US inflation data

Meanwhile, the Ethereum Prize rose suddenly despite the strong US inflation data. According to the statistics authority, the overall inflation rose to 3.7 %in August, the strongest increase in months. The core inflation, which excludes the volatile products, dropped to 4.3 %.

These numbers have an impact on Ethereum and other cryptocurrencies. First, the data indicates that the Federal Reserve could carry out another interest rate increase by 0.25 % next week. In most periods, Ethereum tends to achieve an under -performance when the Fed increases the interest rate. Before the number of inflation was announced, most analysts assumed that the FED would suspend its interest rate increases.

Secondly, higher inflation rates lead to better barrets. Current data show that money market funds achieve a return of over 5.5 %. Therefore, we could observe increased relocation from Ethereum to cash.

The most important thing is that cash is now reducing higher income than most Ethereum Defi products such as Aave, Compound and Maker. This results in the Total Value Lock (TVL) in the Defi from Ethereum Protocol has in the last 30 days to 55 billion US dollar.