Hedera, Fantom, XRP, Filecoin prices rise as US inflation dips

• The headline consumer price index fell to 4.0% in May.

• The stats come as the FOMC prepares to hold its June meeting.

• Economists expect banks to keep rates on hold.

Altcoin prices surged on Tuesday after the US released encouraging consumer inflation data. Hedera Hashgraph price has increased by about 4% over the last 24 hours. Similarly, Fantom, XRP, file coinUniswap rose more than 4% in the last 24 hours.

U.S. inflation receding

Bitcoin and other cryptocurrencies have soared in the past few hours following positive data from the US Consumer Price Index. Headline consumer price inflation fell to 4.0% in May from 4.9% in April, according to the Bureau of Labor Statistics (BLS). This was a bigger drop than analysts expected. It was also the biggest drop in recent months.

These numbers are significant because they were released on the same day that the Federal Open Market Committee (FOMC) is scheduled to begin its two-day meeting. As a result, the committee would be comfortable keeping the rate unchanged at 5.25%. The Fed has raised interest rates consecutively in the last 10 meetings.

The Fed’s moratorium and eventual turnaround will be good news for risky assets such as cryptocurrencies and stocks. That explains why the stock-focused Fear and Greed index soared while major indices such as the Dow Jones and Nasdaq 100 rose in double digits this year.

Regulatory Concerns Remain

For cryptocurrencies like Hedera Hashgraph, Filecoin, Fantom, XRP, these inflation numbers are welcome. However, the biggest risk in the cryptocurrency industry is that US and UK regulators have started a war on these assets.

Last week, the SEC filed a large lawsuit against Binance and Changpeng Zhao. The following day, authorities filed another lawsuit against Coinbase, the largest US exchange. A common allegation in lawsuits is that they offer unregulated products.

Some of these unregulated instruments are proof-of-stake tokens with a yield component. The SEC has already sued Ripple for being an unregulated cryptocurrency. We also identified several tokens that appeared to be securities.

As a result, exchanges that serve US customers may start delisting these tokens, potentially hurting many of their customers.