Bitcoin and Ethereum skyrocketing on the wave of inflation in the US
Encouraging data, if you can call it that, on inflation in the US, which registered +8.5% year-on-year, against expectations of 8.7%, as well as a decrease compared to the previous month
Is it all over? Is that why the markets are celebrating? Not at all, although the lower-than-expected inflation rate obviously pushed the price of Bitcoin up, as it happened with the rest of the industry. Given that the market is facing difficult times in any case, it is useful to understand the possible consequences of such a figure.
The indicator was published at 14:30 and turned out to be lower than analysts’ expectations. Annual inflation rate was 8.5%, which is important in two different ways. On the one hand, we have a lower indicator than everyone expected, on the other hand, a lower indicator than in the previous month, at least on an annualized basis. This may mean that the peak is already over, another signal that the markets interpreted positively.
And if someone tells you that it’s over, don’t believe it. Quite the opposite. The situation remains absolutely far from normal and should not affect the plans of the Fed, which with these data should confirm the rate hike by 75 basis points at the next FOMC meeting. Therefore, this should not have a big long-term impact, both for Bitcoin and for the rest of the cryptocurrency market.
Meanwhile, at the time of writing, Bitcoin is trying to regain the $24,000 mark, and the world of altcoins is growing even more — Ethereum has exceeded $1,800. Price levels that should be confirmed in the near future.
The worst is not over yet, but the conditions for some optimism are beginning to appear.
Contrary to what we will read from those who are most willing to accept it with enthusiasm, little has changed in the overall situation. Or rather, there is something good, because the market is not getting worse, and because, albeit to a small extent, there is an improvement.
The struggle is still a long one, as is the path of returning to a normal situation in the financial markets. There are different situations that need to continue to be monitored both in the US and in Europe.
Before announcing that the peak is over…
Before announcing that the price jump is over, it is necessary to wait for the data for September and October to understand whether the decline (which in any case is a reduction in growth, not a decrease in prices) can be considered prolonged or not.
No matter how welcome this return of green candles with notes of enthusiasm, for those who look at the long term, it is always better to continue to consider all the factors related to the future of the economic world.