Cryptocurrency investors and other risk markets had priced in something close to the worst for the Fed camp. This is the main reason for the jump following the data received today. So really Bitcoin? $96,738.3 Will the price rise be sustainable? Or will we see further increases in cryptocurrencies in the short term?
Bitcoin and Crypto Rising
cryptocurrencies It turned upward again after today’s inflation data. Monthly inflation increase remained at 0.3% in November and December. Annual CPI Although it increased from 2.7% in November to 2.9%, there is an increase here due to the increase in energy and food prices and it does not look that scary.
Below you see the change in all items over the last 12 months. Investors expect the Fed’s interest rate cut to start in July and end in September. This is an improvement from a few hours ago, when the first discount was expected in September.
The potential for a break in the pricing that the Fed may make a single interest rate cut this year will be strengthened by such data. The weakening in core inflation indicates that at least the risk of a larger increase has begun to disappear. If this can be supported by weakening employment data, then we could see further growth in cryptocurrencies.
What Cryptocurrency Investors Should Know
- As core inflation remains low, the potential for the Fed to pause interest rate cuts for a longer period of time has weakened. This situation supported the rise in cryptocurrencies.
- $98,500 is a key point for BTC, and closes above it should open the door to six-figure prices.
- The fact that the US stock markets, which will open in about 1 hour, are supportive and the volumes in the ETF channel (BTC and ETH) are high in the first hours may help further increases.
- silkroad BTC Time is running out for sales and we may see reaction increases on Friday evening and Sunday evening. As the possibility of a weekend sale approaches, this risk will be significantly reduced by Friday evening.
- Fed If their statements care about limiting the rise in inflation, they will support these markets.
- The potential for Trump to issue decrees regarding cryptocurrencies on January 20 supports risk appetite.
- Investors are predicting that the Fed will cut interest rates in June and that the probability of a second Fed rate cut by the end of 2025 is approximately 50%.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
