Why did the market go nuts? 📊

Welcome back Nutty Family 🥜

Today, the markets are green 💚 after a long time. Ethereum increased by 10%, while Bitcoin increased by 6%. Way to go! This Christmas 🎄, the family dinner will be better than expected. 🤭

Without further adieu let us jump into the headlines for today,

1. Why did the market go nuts? 📊

2. Remembering the father of Nutshell Daily 👨🏻

3. Some other NEWS in a Nutshell 🥜

4. Nutty memes 🥜

Why did the market go nuts?  📊

There is a reason why your wallet looks greener than usual. It is CPI, Consumer Price Index. Yesterday, the U.S. Bureau of Labor Statistics announced the CPI is at 7.1%, and the market went nuts. 🤩

Now, why did it go nuts? Let us try to understand. 👇🏻

We will try to make it as nutty and simple as possible 🥜

Imagine a basket filled with all your essential stuff. Flour, nuts, chocolates, milk, housing, etc. This basket gives you an idea of your expenses and helps you know how much you need to keep aside before you YOLO the rest into crypto and NFTs.🤪 😎

So if the cost of this basket rises, you save more, and if it decreases, you save less. The force dictating the rise is called inflation. 📈

The US Federal Reserve aims for around 2% inflation every year and CPI is one of the most widely used tools to measure inflation. 🛠️

Now, in general, 2️⃣ scenarios play out. 

Scenario 1:

So if CPI rises, the Fed feels that inflation is out of control, it launches measures to squeeze the market. That is, take money out of the market. 💸

This would mean people expect the cash supply to decrease and maybe sell cryptocurrency to prepare for the future. ⏩

Scenario 2:

So if CPI falls, the Fed feels that inflation is under control,and it launches measures to loosen the market. That is, pump money into the market. 💵

This would mean people expect to have more cash in hand in the future and YOLO their current cash into cryptocurrency. 🎲

These expectations of future cash flow make the price jump up and down whenever CPI rates are released. 🎢

In this context:

Our CPI rate for October 2022 was 7.7%. The CPI rate (just released) for November 2022 is 7.1% 😮

So this fractional decrease of 0.6% is what made the markets go nutty today. 🥜

Now before you go off and imagine yourself as a financial genius and trade your life savings into cryptocurrency. Keep in mind, CPI is a much broader topic and there are a host of other factors in place for determining the value of any cryptocurrency.

Remembering the father of Nutshell Daily 👨🏻

Today we introduce you to the king 👑 of cryptocurrency, the founder 🔍 of Bitcoin, the messiah of decentralization, and the father of Nutshell Daily, Satoshi Nakamoto. 👨🏻

I mean, yeah! If there was no Bitcoin, how would we have launched Nutshell Daily? 🥜

So our father, err, I mean Satoshi Nakamoto, was last seen on the bitcointalk forum on December 13th, 2010. It has been over 12 years, and we are still searching for him. 🔎

However, he is nowhere to be found. We miss him. 😭

Last activity: He was eating nuts. How do we know it? He is our father, come on.🤫

Let us tell you one thing: He was a great man. He revolutionized the world yet claimed no credit. He invented a technology yet claimed no patent.

BUT, not so great father. I mean, his child is distributing a free newsletter, and still, he cannot send 1 bitcoin to support him? 💔

Whatever the case be, we hope he is happy wherever he is today. 💕

Some other NEWS in a Nutshell 🥜

• Binance saw an outflow of over $5.5 Billion. The founder casually tweeted that it was a normal day and nobody had anything to worry about. Binance really is our last pillar, glad to see it is holding strong.

• FTX founder finally got arrested in Bahmas.  Hopefully he will stop appearing on every random space and claim himself to be the savior

• Apple is planning to open their walled garden and allow the inflow of external iOS applications. It is not out of their internal change in stance but to comply with regulations.

Nutty Meme🥜

True story.

That is all for today folks! Hope you got to learn something from today's newsletter. Especially the nutty reason behind the market hype yesterday. If you found it interesting please reply to this email about whether you found it useful!

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