This volatility in digital assets occurs after Jerome Powell’s speech, before the United States Congress and the inflation data that marked an advance of the IPC nucleus. What do analysts expect.
The cryptocurrencies They turned after starting the day down and uploads this Wednesday. He Bitcoin (BTC) advances 1.4% au $ S97.435according to Binancewhile Ethereum (eth) goes back 2.8% And it is located in the U $ 2,680.
The rest of the Altcoins also recover and go up to 8.6% headed by Binancefollowed by Shiba Inu (+6.7%), Sui (+4.7%) and Dogecoin (+3%) ,.
International context
The president of the Federal Reserve (Fed), Jerome Powellintervened before him Senate of the United States, where He reiterated his prudent approach to the reduction of interest rates, Posture that had already expressed at the first meeting of the Fed year, in which the rates remained unchanged.
“Now that our monetary policy is significantly less restrictive than before and the economy remains solid, there is no need to hurry to modify it,” Powell explained. He also warned about the risks of reducing types too fast, since this could affect progress in the fight against inflation. “We will adjust our policy as necessary to achieve our maximum employment and price stability objectives“He added.
In addition, the labor statistics office of USA (Us Bureau of Labor Statistics) released on Wednesday the 201 Consumer Price Index (CPI) report and revealed that Inflation increased more than expected in the first month of the year, while underlying prices reversed Last month decelerationkeeping the focus on the future of the Federal Reserve policy.
The most recent figures of the Office of Labor Statistics revealed that the Consumer Price Index (CPI) rose 3% year -on -year in January, an increase with respect to the 2.9% registered in December. Consequently, The operators adjusted their prognosis for the next rate cut of the Fed from September to December.
Matias Part, Bitget analyst He pointed out that this February inflation fact will be decisive for the Crypto market management in the short term.
“Bitcoin, which already comes from weeks of volatility marked by uncertainty about the monetary policy of the Federal Reserve and the recent mass sale in technological markets, will face a key moment where investors will seek clarity about the future of interest rates“He warned part.
If inflation is higher than expected, the probability that the Fed delay or even discard features of fees would increase, which It would negatively impact risk assets such as Bitcoin. In this scenario, we are likely to see an increase in risk aversion, with massive short -term sales that could lead BTC to test levels close to $ 95,000 or even less if the market panic. However, persistently high inflation would also reinforce Bitcoin’s narrative as a long -term value reserve, which could attract institutional capital once immediate volatility stabilizes.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
