Yesterday the CPI reading boosted gains in the European and US markets, but was unable to move into cryptocurrencies which, after a timid attempt to rise (bitcoin set intraday highs at $30,959), ended the day far away. of this goal.
He Bitcoin It moves away from US$31,000 and investors’ expectations moderate after the US inflation data. This Thursday, July 13, the 10 main cryptocurrencies operate with the majority of falls of up to 1% and the notable increases respond to Litecoin (2.9%) and Dogecoin (0.3%).
The digital assets they have passed completely from the US June inflation data. Yesterday the CPI reading boosted gains in the European and US markets, but was unable to move into cryptocurrencies which, after a timid attempt to rise (bitcoin set intraday highs at $30,959), ended the day far away. of this goal.
For Craig Erlam, senior market analyst at OANDA, there was “a lot of volatility” in the price of the cryptocurrency reigns after the release of US inflation, but “in terms of sustained direction, not much seems to have changed.” “The price is still extremely volatile, so it may not be the case an hour from now, let alone the end of the day. Traders, as things stand, can’t seem to make up their minds if (inflation data ) is good or bad for ‘cryptos,'” he added.
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What is the expectation on rates
However, the data may not be sufficient for the Federal Reserve (Fed). Numerous analysts point out that, despite this data, other indicators such as the rise in wages provide enough arguments for the central bank to raise interest rates on July 26. So much so that CME’s FedWatch tool gives a 92% probability of a 25 basis point hike. According to the experts at Oxford Economics, a good reading of the inflation “has set the Fed up for a policy error” as the agency “has put itself in a corner as communication from Fed officials has signaled that another rate hike this month is essentially a piece of cake.”
However, experts also estimate thatl CPI for June It could also mark a turning point for Powell and his team. Now, the consensus does not expect any further hikes for the remainder of the year, as the “soft landing” that US central bank officials hoped to achieve appears to be taking shape.
“It may be the last one and if we see any more signs of progress over the summer, the debate will likely end, shifting the conversation of how many more you raise to the time of the first cut,” Erlam explains.
Source: Ambito
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