Hedera, Fantom, XRP, and Filecoin prices increase as US inflation drops.
The consumer price index headline dropped to 4.0% in May.
The FOMC is preparing for its June meeting.
Economists anticipate that the bank will keep interest rates unchanged.
Altcoin prices rose on Tuesday following the publication of optimistic consumer inflation data by the US. In the last 24 hours, the Hedera Hashgraph price has risen by about 4%. Similarly, other altcoins like Fantom, XRP, Filecoin, and Uniswap have grown by over 4% in the past 24 hours.
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US inflation retreats
Bitcoin and other cryptocurrencies have risen in the past few hours after the encouraging US consumer price index data. According to the Bureau of Labor Statistics (BLS), the headline consumer price inflation has dropped from 4.9% in April to 4.0% in May. This decline was greater than what analysts expected and the biggest decline in several months.
These numbers are important because they were published on the same day that the Federal Open Market Committee (FOMC) is set to begin its two-day meeting. As a result, the committee will likely keep interest rates at 5.25%. It has been raising interest rates in the past ten meetings straight.
A pause by the Federal Reserve and an eventual change in policy would be good news for high-risk assets like cryptocurrencies and stocks. This is why the stock-focused fear and greed index has risen, and key indices like the Dow Jones and Nasdaq 100 have gained by double digits this year.
Regulatory concerns remain
For cryptocurrencies like Hedera Hashgraph, Filecoin, Fantom, and XRP, these inflation numbers are welcome. However, the biggest risk in the crypto industry is that regulators in the US and the UK have taken a hard stance against these assets.
Last week, the SEC filed a major lawsuit against Binance and Changpeng Zhao. On the following day, the agency filed another one against Coinbase, the largest exchange in the United States. A common allegation in the lawsuit is that they offer unregulated products.
Some of these unregulated products are proof-of-stake tokens that have a yield element. The SEC has already sued Ripple, alleging that it is an unregulated cryptocurrency. It has also identified several tokens it believes are securities.
As a result, exchanges that serve American customers may start delisting these tokens, which could have a negative impact on many of them.