Cryptocurrency Market Soars as Traders Anticipate Monetary Policy Stability
Summary:
Cryptocurrency market capitalization surges as traders anticipate no changes in monetary policy following US inflation data. Bitcoin, Ether, and Solana all see gains. Investors respond positively to US CPI report, with core inflation remaining on a downward trajectory. Court ruling approves sale of FTX's crypto assets, reducing potential selling pressure. Short-term rebound observed in market, but caution advised. This article does not provide investment advice.
The combined value of cryptocurrencies has surged in the past 24 hours as traders anticipate that there will be no changes in monetary policy following the latest US inflation data. On September 14, the market capitalization of the crypto market reached $1.035 trillion, with a 1.58% increase during the day, encompassing major cryptocurrencies like Bitcoin, Ether, and Solana. Investors in the crypto market seem to be pleased with the US consumer price index report, which showed a 0.6% increase in August, mostly driven by rising gasoline prices. However, core inflation remained on a downward trajectory towards the Federal Reserve's desired target of 2%. This decline in core inflation aligns with traders in the derivatives market increasing the likelihood of a pause in interest rate hikes in September. Market sentiment was further boosted by a recent court ruling approving the sale of defunct exchange FTX's crypto assets, although sales of assets such as Bitcoin and Ethereum were prohibited. The exclusion of these assets in the court ruling reduces potential selling pressure that FTX sales could have caused. The market's recent gains are part of a short-term rebound that began on September 11 when the relative strength index dropped to an oversold level, signaling a potential buying opportunity. However, caution should be exercised as the market continues to trade below key exponential moving averages, and a pullback may lead to a decline in market valuation. It's important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.
Published At
9/14/2023 12:07:03 PM
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