The cryptocurrency market remains cautious awaiting inflation data in the US, while investors speculate about possible changes in the Federal Reserve’s monetary policy and its effects on risk assets.
Cryptocurrencies They remain in a trend and then establish one or another rebound. Bitcoin (BTC) registers moderate increases and is just below the US$97,000according to the Binance quote, after having approached the US$98,000 during the Asian day.
The picture is similar for ‘altcoins’. Ethereum (ETH) retreats as it tries to consolidate $3,200. Other tokens such as Binance Coin (BNB), Solana (SOL), and Tron (TRX) also see slight declines. However, some assets stand out for their gains, such as Cardano (ADA), which is up 3%, and XRP rising almost 20% in recent daysand Stellar (XLM), which register increases of more than 8% in the last 24 hours.
The strong rebound of XRP It is driven by accumulation by large investors, known as whales, and speculation about the possible approval of an exchange-traded fund (ETF) for the Ripple cryptocurrency. According to a report from JP Morgan, SOL and XRP ETFs could outperform ETH ETFs during their first six months on the current market.
Bitcoin: what the market analyzes
Sean Dawson, head of research at Derive, explained to ‘Cointelegraph’ that as BTC is purchased in large quantities, investors could begin to rotate capital towards altcoins like XRP, which could further drive bullish sentiment. In addition, he highlighted that Ripple’s legal situation with the SEC could reach a favorable resolution under the Donald Trump administration.
These movements occur on a crucial day for the US market, as December inflation data will be released today. Market consensus expects the CPI to rise to 2.9% year-on-year, up from 2.7% in November. After several stronger-than-expected macroeconomic data, a negative figure could give the Federal Reserve more arguments to adopt a more restrictive stance in its monetary policy.
As previously reported, the Fed halved its 2025 rate cut forecast to 50 basis points due to the impact of monetary policy. Donald Trump on inflation. According to data from CME’s FedWatch tool, the market does not expect rate cuts in the first three meetings of the year, and only a 25 basis point reduction is contemplated starting in June.
Matt Morgan, strategist at Jupiter AM, said: “There is a growing risk that a growth shock will be needed to control inflation.” This could hurt equity markets, but “could eventually make government bonds attractive again.”
“Markets will question the economic cost of winning the battle against inflation. Higher rates, a strong dollar and the possible return of Trump-era tariffs represent challenges for global growth. In this context, we expect risk assets and government bonds continue to be volatile as these scenarios play out,” he concluded.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
