Is it all about the Fed? The roller coaster on the market Bitcoin (BTC) and cryptocurrencies continue. While, last week, the good US employment figures had a negative impact on assets ” risk-on »like stocks and cryptos, this week, figures of a contained inflation in the United States could to reassure market players. Because the reduction in key rates of the Federal Reserve (Fed) is in play.
- Recent US inflation data was better than expected, providing a slight rebound for “risky” assets like stocks and cryptocurrencies.
- Bitcoin has already rebounded towards $97,000, pending tomorrow's publication of the Consumer Price Index (CPI) which could influence the Fed's monetary policy.
The first inflation figures in the United States are positive for “risky” assets
This Tuesday, January 14, 2025, first data on the state of American inflation have fallen. And they turn out better than expected. Indeed, the producer price index (PPI, producer price index) is 3,3 % in December over a rolling year. The estimates were more pessimistic, since they counted on 3.4%.
Likewise, the index Core PPIwhich excludes food and energy, is 3,5 % in December over a rolling year, which is also better than forecast which saw an increase of up to 3.8%. As we will see, the markets for assets ” risk-on » took these figures rather well, and even rebound upwards.
Bitcoin is once again close to $97,000, pending CPI inflation this January 15
The last few days have not been easy for the cryptocurrency market. Bitcoin was even very briefly fell below $90,000 this Monday, January 13. Because the good American employment figures published on January 10 removed the prospect of a rate cut by the Federal Reserve of the United States.
And it is the exact opposite that has happened today, with inflation that remains maintained. In any case more than what was feared. The flagship inflation index, the consumer price index (CPIor consumer price index) will however only be published tomorrow, Wednesday January 15.
So that she continue the drop in its interest rates, the US central bank has set itself a 2% target for the CPI. If this inflation, on the consumer side, also remains stable as for inflation on the producer side (the PPI published today), then it will be a argument in favor of a more accommodating policy from the Fed.
With therefore in particular the hope of a next reduction in key rates which will not be not too far away in time. If the economic data linked to the decisions of monetary policy of the Fed are being watched very closely by the markets, there are of course other important factors to take into account. The approach ofInauguration Daynext Monday January 20, which will see Donald Trump officially becomes the 47the president of the United Statesshould also be a very positive factor. In fact, of first pro-crypto presidential executive orders could be given from this Day One of Trump's second term.
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