Reserve

Cryptocurrency

Chair

Impact

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/how-us-inflation-trends-influence-crypto-market-sentiments" rel="noopener noreferrer nofollow">How US Inflation Trends Influence Crypto Market Sentiments</a><br></p>
<p style="text-align: justify">Cryptocurrency investors are keeping a vigilant eye on inflation trends, especially during the current market downturn. The Federal Reserve has aggressively hiked interest rates, leading to turmoil in risk asset markets and exacerbating the crypto sector’s downturn. Now, inflation is showing signs of retreat, a critical trend for market stability and recovery.</p>
<h2 id="anticipations-from-the-federal-reserve">Anticipations from the Federal Reserve</h2>
<p style="text-align: justify">Federal Reserve officials, including Chair Jerome Powell, have indicated their anticipation of continued inflation decline, which bodes well for market optimism. Despite this, the market remains wary of potential inflation spikes that could destabilize the already delicate economy and adversely affect the crypto sector, particularly with the upcoming <a href="https://en.bitcoinhaber.net/deciphering-the-buy-the-rumor-sell-the-news-phenomenon-in-crypto-markets" rel="noopener noreferrer nofollow">Bitcoin</a> halving event.</p>
<h2 id="impact-of-inflation-on-rate-expectations">Impact of Inflation on Rate Expectations</h2>
<p style="text-align: justify">In the face of today’s pivotal inflation data, there was no anticipated decrease for March. However, the May reduction and the annual inflation figures hinge on forthcoming data. Expectations for January included an announced annual inflation rate of 3.1%, against a forecast of 2.9%, and a core annual inflation rate of 3.9%, matching earlier figures but exceeding the anticipated 3.7%.</p>
<p style="text-align: justify">The present data reveal that core inflation did not drop as expected, surpassing forecasts. This lower-than-expected decrease suggests a gradual approach to interest rate reductions in the near term. The dollar index experienced a surge, and pre-market trends indicate a tilt towards sales in the US stock market. The likelihood of interest rate cuts in May and June has diminished, as indicated by Fed Swaps, compelling investors to defer the expected 25 basis point Bank of England interest rate reduction from August to September.</p>
<p style="text-align: justify">Investors in the cryptocurrency space and broader risk markets are feeling the pressure as they navigate the turbulent waters of inflation data and interest rate speculations.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/how-us-inflation-trends-influence-crypto-market-sentiments" rel="noopener noreferrer nofollow">How US Inflation Trends Influence Crypto Market Sentiments</a></h5>

How US Inflation Trends Influence Crypto Market Sentiments

Table of Contents

BH NEWS

Other articles published on Feb 13, 2024

Is Dogecoin on the Verge of a Breakout After the 250 Million DOGE Transfer?

Bitcoin Pre-Halving Rally ‘Has Begun,’ but Ethereum and Altcoins Will Follow BTC – Here’s Why

Crypto-Friendly Fast Food Chains Likely to Take a Hit as Inflation Soars

Coinbase latest ad argues blockchain could make pennies ‘useful’ again

Bitcoin Price Revisits $50K, Why BTC Could Start A Short-Term Correction

ENS Labs considers $300,000 settlement offer in Eth.link domain dispute

Join our free newsletter for daily crypto updates!