Good day for the crypto world, that floats on the European session to then enjoy a pump on all major assets with i inflation data coming from USE.
Data almost in line with forecasts, but out of phase by just enough it allowed Bitcoin to return close to altitude $ 44,000 and the remainder of the sub-fund to recover at least part of the losses incurred by beginning of the year.
A good time for crypto? Probably yes, and we will try to read it in our in-depth analysis. In the meantime, anyone who wants to invest can do so with Capital.com – go here to get a free demo account with unlimited virtual capital – intermediary that includes +235 crypto assets in the price list, many of which among top performer of the last few hours.
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Bull run back or little pump? Inflation and Powell lend a hand to the industry
Of the effects of the Jerome Powell’s speech yesterday we have already talked about it abundantly. A Powell at the head of the Federal Reserve who appeared more submissive than usual, and smug under-track of both the labor market and inflation – both fully within the mini-forecasts he had offered before Christmas.
All accompanied by a decidedly more attitude soft towards so much of the interest rates – with Powell who confirmed that we will continue to live in an era of low rates, much towards the tapering. Today the inflation data, slightly higher than the markets expected, have helped to push up not only Bitcoin, but also the equity sector, with NASDAQ for example that it has recovered the major losses it had accumulated since last week.
A painting that has suddenly turned back to bullish? It is not said, because in reality there are other questions, many of which relate to the possible reactions of Fed to these news, which must confirm or deny the continuation of the cycle.
Inflation basically in line with expectations: the highest in 40 years
We Italians will not be surprised, at least among those who have more than a few years on their backs, of an inflation at 7%. However in the USE this is a definite fact out of size, with the States which have almost never experienced high inflation phases as in the Italy of the First Republic.
We are talking, on balance, of the higher inflation than him USE are faced by 40 years now year over year. An impressive number, for which however i markets they were already partially prepared. This has stimulated some growth since the opening of the US session.
Now the ball will come back to FED, which in the meeting of January will have to decide whether to change the plan announced yesterday by Powell, which in a nutshell provides for very soft movements, or whether to increase the dose given that inflation has in any case remained at levels relatively tall.
What does this have to do with the crypto world? As always an intense acceleration in terms of interest rate hikes it could have compressive effects on the possible stroke of the group. But what emerged quite clearly yesterday is that in reality the space of Powell it’s not that wide. And what if $ BTC and company will also remain tied to the performance of the stock markets, they may have the umbrella they have been looking for for years.