The US Treasury published data on inflation for April, which showed that price increases slows down faster than expected. Despite this, Bitcoin has irrelevantly changed in price at the time of publication of the report, within a few minutes after the news it rose from $ 103.5 thousand to $ 103.8 thousand, reports RBC Crypto.
According to published statistics, the annual consumer price index (CPI) updated the minimum since February 2021, it amounted to 2.3% against the forecast of 2.4%. The basic CPI (excluding prices for energy and products) remained within the framework of the forecast, at the level of March – 2.8%.
The cryptocurrency market often reacted sharply to the inflationary data, as they affect the expectations at the Fed’s rate: a slowdown in prices increases hope for its reduction, which usually maintains the demand for risky assets, including cryptocurrencies. How decisions of the Fed and Macro -Dannas influence cryptocurrencies. What to consider
Although the data indicates a slowdown in inflation, they are unlikely to affect the decision of the US Federal Reserve (Fed) to reduce the key rate, writes Coindesk. Throughout the spring and at a press conference after the Fed’s meeting last week, the Fed The Chairman of the Fed Jar Powell indicated that the Central Bank is in no hurry to take any actions regarding interest rates.
Market participants also do not count on a quick softening of the Fed’s policy. According to CME FedWatch, the probability of reducing the rate in June by 25 percentage points in June. It is only 8.2%. According to the publication, a month ago it was 80%. The likelihood that the Fed will not increase the rate in July – 61.4%, a month earlier – only 7%.
Earlier, analysts noted that it is precisely the unbearable to quickly reduce credit rates by the Fed can be restrained to further increase in cryptocurrency prices. And now there has been a short -term growth, to continue which we need new sources of liquidity.
In early May, Bitcoin (BTC) updated a maximum of three months, rising to $ 106 thousand. The market capitalization of the coin exceeded $ 2 trillion. This growth attracted a wave of new customers to the market, while experienced traders show caution, paid attention to Glassnode. The high activity of beginners indicates that the market now prevail over the calculation, journalists note.
New investors in large quantities usually join the market in bull conditions, experiencing fear of missing benefits – FOMO. It arises when investors see that others make a profit, or fear that prices will significantly rise without them. This feeling makes users make impulsive purchases under the pressure of emotions, and not after careful calculation.
However, the activity of other groups of investors is not so encouraging, noted in Glassnode. According to analysts, a slowdown in capital influx increases the likelihood of consolidation or reduction in bitcoin prices.
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Source: Cryptocurrency
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