The McRib is Back and Crypto Markets Are Pumping Right on Cue
On Monday Mcdonald’s announced the return of the McRib® and almost immediately crypto prices took off, with BTC up 7%, ETH up 20%, and Doge up 25% since the announcement.
A pork price connection
It seems that every time McDonald’s relaunches the McRib®, the crypto markets pump. While the link may seem like a humorous spurious correlation, there may be something underpinning the relationship that has amused crypto analysts.
McDonald’s brings back the McRib® every time pork prices are unusually low. Incidentally, falling market prices are an indicator of cooling inflation which has big implications for the macroeconomic situation that has been weighing on crypto prices of late.
The connection was most recently highlighted by Zack Voell on Twitter, who posted the tongue-in-cheek tweet above right before the latest rally took off!
ETH has turned deflationary
There is certainly more to the current rally than a dip in pork prices, however, and based on the leg up ETH has over BTC in the current rally, it is likely that the ongoing impact of the recent ETH upgrade is playing a key role.
ETH has entered deflationary territory over the past month. Since October 8th, the ETH supply quietly decreased by around 12,000 ETH (around $18.5m).
It’s about to hit the same total supply levels as before the Merge, which is a huge moment for ETH!
Bitcoin has until now been seen as the number one form of ultra-sound money in the crypto economy thanks to its hard limit of 21 million tokens. However, that mantle is now being challenged by ETH, which now has a declining total token supply.
Over the last 24 hours, over $400m in ETH short positions were liquidated.
This means that all the people that are betting against the price of ETH lost their bets as the ETH price went up.
Liquidations are fascinating – they can lead to price pumps and price dumps. When there’s movement on either side, you better hold tight because it tends to mean things are about to move fast!
ETH liquidations data via Coinglass.
As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.
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