Inflation in the US slightly higher than expected, with Bitcoin losing ground in a matter of minutes and with alt who follow him closely, for an American trading session that opens in a very violent way. The data were worse than the already unexciting expectations, which will end up giving strength to those who really don’t want to hear about rate cuts.
More than a crisis for Bitcoin And cryptowhich in any case will have to be evaluated during the session, it would perhaps be appropriate to look at the matter from the other angle of the couple, i.e. from the side of US dollarwhich is the real winner in this data.
This is also demonstrated by the crisis, on the other side of the world, of the yen, which breaks through 152 against the dollar, opening to scenarios terrifying and which will most likely require intervention from the central bank and the Ministry of Finance. While this is absolutely irrelevant to the crypto and Bitcoin world, it will help offer some context on what is happening to the world of investments in these excited hours.
Inflation higher than expectations: what does it mean for the Bitcoin and crypto world?
The markets didn’t take it very well. Inflation is higher than the already less than encouraging expectations, a sign that the path of Federal Reserve it will still take a long time to contain it and bring it back to 2%. Bitcoin it reacts by burning almost $1,000 in value in the space of a few minutes and the top cryptocurrencies in terms of market capitalization also follow in its wake.
They believe that the rate cut, which riskier markets would love so much, will come even further. In concert, the dollar strengthens, which is easily verifiable by the DXY index and also by the fact that cryptocurrencies have actually lost significantly less against the euro.
A situation that was perhaps predictable, but which nevertheless triggered the market’s usual gut reaction, waiting to return to milder advice once volatility had run out.
Certainly not, although the data is not the best for everything that is against the dollar. Dollar in an absolute state of grace that no one – especially among specialists – had predicted.
However, we will have to see how the situation will evolve in the coming weeks, with the next one FOMCthe meeting that decides on US interest rates, which will almost certainly leave them unchanged at this point.
FOMC minutes tonight
This is not the only important data for the markets today. At 8pm there will be past FOMC minutes, which will explain the positions within the Federal Reserve regarding monetary policy in a little more detail.
An overall difficult situation, but one that should not reserve further surprises. We can always update ourselves both here and on ours Telegram channel to follow this umpteenth day of passion in a sector that is also this. And anyone who thinks that all is lost should take a look at the other markets, where the red is just as solid.
