- The U.S. CPI announcement will be felt throughout the crypto markets.
- FOMC is expected to reduce the rate hike to 50 BSP.
- Former FTX CEO, Sam Bankman-Fried’s hearing is scheduled for Tuesday.
The stock market picked up steam late on Monday in preparation for the anticipated Federal Reserve interest rate hike and Tuesday’s CPI data announcement. This has caused crypto values to go higher.
The FOMC outcome on Wednesday will be heavily dependent on the CPI statistics. According to the NY Post, the Fed is expected to reduce the rate hike to 50 basis points.
There is often a simple core scenario: if the results are better than anticipated, risky assets like Bitcoin will climb. The CPI might result in a new bear market bottom for Bitcoin if it is below estimates.
However, the statements made during the FOMC press conference as well as the predictions of the revised economic estimates are likely to become much more significant.
Meanwhile,Sam Bankman-Fried is scheduled to appear before Congress on Tuesday morning concerning the failure of FTX. The crash’s aftereffects are still being felt throughout the sector.
Also, after surpassing $17,525 on Sunday, the biggest cryptocurrency in the world started the day by losing momentum. Bitcoin increased by a minuscule percentage by Monday afternoon to recover $17,100.
After falling to $1,250 in the morning from roughly $1,290 over the weekend, Ethereum rebounded above $1,270 late Monday. The #2 cryptocurrency traded above $1,600 before the FTX meltdown.
Investments in digital assets are exceedingly volatile right now. The community believes that investors should concentrate on the same basic plan: keep themselves safe by understanding when to sell, trim losses, or take profits.
Despite their initial promise, cryptocurrencies have not proven to be effective inflation hedges. Instead, they have paralleled the broad indexes’ trajectory.