{"id":23073,"date":"2022-08-29T14:35:21","date_gmt":"2022-08-29T09:05:21","guid":{"rendered":"https:\/\/coinswitch.co\/switch\/?p=23073"},"modified":"2022-09-19T18:34:52","modified_gmt":"2022-09-19T13:04:52","slug":"inflation-rate-concerns-drag-down-ether-metrics","status":"publish","type":"post","link":"https:\/\/coinswitch.co\/switch\/crypto\/inflation-rate-concerns-drag-down-ether-metrics\/","title":{"rendered":"Inflation, rate concerns drag down Ether metrics"},"content":{"rendered":"<p>Global markets\u2014crypto and equity\u2014have been on a slippery slope after Fed Chair Jerome Powell focused on the need to raise interest rates further to tame inflation. While our latest <a href=\"https:\/\/coinswitch.co\/switch\/crypto\/market-update-august-29-2022\/\">market update<\/a> enlists the key developments post the symposium held at Jackson Hole on Friday, Ether was impacted the most\u2014 courtesy of the changing token metrics.<\/p>\n<h2>What does a drop in ETH funding rate indicate?<\/h2>\n<p>While most crypto assets took the hit, it turned out to be a double whammy for Ethereum. Along with the ETH prices which corrected over the weekend, the ETH funding rate too dropped, according to data released by <a href=\"https:\/\/cryptoquant.com\/asset\/eth\/chart\/derivatives\/funding-rates?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=column\" target=\"_blank\" rel=\"noopener\">CryptoQuant<\/a>. For perspective, the current funding rate is the lowest in the past 14 months, signifying bearish sentiments among ETH traders.<\/p>\n<p>When funding rates were this low in June 2021, a short squeeze on Ether and BTC followed.<\/p>\n<h2>Deposit contracts too at a month-low<\/h2>\n<p>ETH 2.0 contracts involving staking deposits reached a month-low of $19,475,077,788, as reported by Glassnode. The drop in deposit contract volume might be a bearish indicator ahead of the upcoming merge. A drop in funding rates and deposit contracts was expected given the low liquidity in the market post-Jackson Hole annual policy speech and ETH\u2019s 12% drop over the weekend.<\/p>\n<p>Here is the Glassnode tweet for your reference:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udcc9 <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Ethereum<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$ETH<\/a> Total Value in the ETH 2.0 Deposit Contract just reached a 1-month low of $19,475,077,788.75<\/p>\n<p>Previous 1-month low of $19,589,437,125.96 was observed on 27 August 2022<\/p>\n<p>View metric:<a href=\"https:\/\/t.co\/1ezmu1GKcj\">https:\/\/t.co\/1ezmu1GKcj<\/a> <a href=\"https:\/\/t.co\/WD6iXWIhUH\">pic.twitter.com\/WD6iXWIhUH<\/a><\/p>\n<p>&mdash; glassnode alerts (@glassnodealerts) <a href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1564059156167987200?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 29, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Despite key ETH metrics retreating ahead of the big event, the growing influence of macro factors alarms traders the most. Ether is closely correlated to the S&amp;P 500 index, with the correlation even higher than that of Bitcoin, as per data released by Santiment. Considering the market situation, we can expect higher volatility at Ether\u2019s counter in the near term.<\/p>\n<p>Currently, the negative macro influence seems to be shadowing optimism surrounding the merge.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global markets\u2014crypto and equity\u2014have been on a slippery slope after Fed Chair Jerome Powell focused on the need to raise interest rates further to tame inflation. While our latest market update enlists the key developments post the symposium held at Jackson Hole on Friday, Ether was impacted the most\u2014 courtesy of the changing token metrics. [&hellip;]<\/p>\n","protected":false},"author":76,"featured_media":23074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[460,6530],"tags":[6467,6536],"class_list":["post-23073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","category-news-2","tag-crypto","tag-news"],"acf":{"json_ld_schema":"\n[{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#FAQPage\",\"headline\":\"Wall Street jottings: A personal, guided tour to investing in US stocks\",\"keywords\":\"Personal Guide, US Investing, \",\"datePublished\":\"2022-07-22T13:28:55+05:30\",\"dateModified\":\"2022-07-22T13:28:55+05:30\",\"dateCreated\":\"2022-07-22T13:28:55+05:30\",\"author\":{\"@type\":\"Person\",\"name\":\"Praniket Nayka\",\"description\":\"\",\"url\":\"https:\/\/coinswitch.co\/switch\/author\/praniket\/\",\"sameAs\":[],\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4b22173b861c31fe922bbaf46c336561?s=96&d=mm&r=g\",\"height\":96,\"width\":96}},\"image\":[{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/coinswitch.co\/switch\/us-stocks\/wall-street-jottings\/#primaryimage\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings.jpg\",\"width\":\"1800\",\"height\":\"1080\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x900.jpg\",\"width\":\"1200\",\"height\":\"900\"},{\"@type\":\"ImageObject\",\"url\":\"https:\/\/coinswitch.co\/switch\/wp-content\/uploads\/2022\/07\/Wall-Street-Jottings-1200x675.jpg\",\"width\":\"1200\",\"height\":\"675\"}]}]\n","json_ld_custom_schema":"","youtube_vodeo_url":"","seo":{"title":"","keywords":"","description":"","canonical":""},"blog_banner_image":false,"blog_coin":false,"download_the_app":{"button_value":"","button_url":""},"twitter_card":{"twitter_title":"","twitter_description":"","twitter_link":""},"maturity_tag":"Beginner","post_author":false,"guest_author":false,"hide_toc":true,"key_takeways":false,"select_disclaimer":"Article Default Disclaimer"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/23073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/users\/76"}],"replies":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/comments?post=23073"}],"version-history":[{"count":3,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/23073\/revisions"}],"predecessor-version":[{"id":23078,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/posts\/23073\/revisions\/23078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media\/23074"}],"wp:attachment":[{"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/media?parent=23073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/categories?post=23073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinswitch.co\/switch\/wp-json\/wp\/v2\/tags?post=23073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}