In the first few months of 2022 macro uncertainty has been felt in the crypto and traditional markets as economic, regulatory, and political scenarios unfold. Historically, investors see gold as a reliable safe-haven asset they can run to when stocks and bonds decline. It is not surprising for gold prices to have seen a 19-month high as the U.S. and UK decided to ban Russian energy products. It seems that now investors are not only attracted to the metal, but to gold-backed tokens as well. What Crypto Can Expect From Macro Uncertainty The macro uncertainty has only increased in 2022, starting with Russia’s invasion of Ukraine, then escalating as the sanctions on Moscow have a direct effect on commodities prices. Moreover, analysts expect that a rising U.S. inflation will be reflected in the CPI numbers to be published next Thursday. Arcane Research data noted that CPI is expected to reach 7.9%, and the Federal Reserve might perform the 25 basis point rate hike that chair Jerome Powell said he is inclined to support. Bloomberg experts, however, project for “February CPI to show an increase of 8.0% year over year and top out in the vicinity of 9% in March or April,” and added that “CPI could rise above 10%” if energy prices continue to rise. The Fed has also said that they might move more aggressively later on if inflation does not come down. If the market’s expectations on the rate hike do no...
