Rumor Regarding US Inflation Data Diminishes Lead Crypto Economies
US Inflation Data Impact
Huge economic announcements, having the potential of changing market moods subsequently, are anticipated to emerge from the US.
Rumor is that the US Federal Reserve’s upcoming announcement pertaining to inflation data will comprise reduced rates by at least 7.3%.
It is hoped by business and investor communities that Federal Reserve may be detaching itself from employing hard-hitting rate increase policies.
The rumor does seem to have impacted crypto markets and consequently diminished the global crypto economy.
Rumor Effect on Bitcoin
This week’s crypto trading began in red for the lead cryptocurrency, Bitcoin. This may be because investors are now more interested in hearing the US Federal Reserve’s announcement pertaining to inflation rates.
It is expected that the inflation data, which is scheduled to be announced on 13th December, will be reduced to 7.3%. In the past month, the inflation rate, as announced by Federal Reserve, was 7.7%.
This deviation from hard-hitting rate increase policies by Federal Reserve in the past will slightly boost the investors’ confidence.
Resultantly, Bitcoin’s value dropped to $16,899.39 at the closing of Monday’s trading sessions. However, during the day sessions Bitcoin even managed to go past $17,245.64, however, $16,899.39 became the intraday lowest price.
Examining Bitcoin’s performance, it is abundantly clear that Bitcoin’s value is dropping consecutively, exactly back-to-back for the past 4 days. It is now edging down to a crucial ceiling point of $16,700.
Similarly, Bitcoin’s past 14-day relative strength index (RSI) is edging down. It is sharply moving towards the resistance level of 46.00 which though tracked at 47.42 at the beginning of Monday’s trading sessions.
If the rumors become true, then there is a likely hood that Bitcoin’s price may drop below $16,000 from $16,700.
US Data Inflation Effect on Ethereum
Ethereum also started off Monday’s trading sessions on the lower side. Ethereum saw its price edging down since the second session of the day began.
Monday trading sessions were begun by Ethereum with a price range of $1,281.78. However, it gradually started to edge down to the bottom when firstly the value dropped to $1,243.48 during the second session.
By the time Ethereum ended the second session, its value fell as low as $1,243.48. Finally, the second lead coin concluded the day trading at the price range which came near $1,230.
The reason why bearish sentiment came in was because of Ethereum’s failure in not going past the 52.00 crucial ceiling in RSI. As of now, RSI indicates that the tracking has edged down from 48.60 to 45.30.
Irrespective of the downtrend, Ethereum’s moving average in the past 10 days still indicates positivity.
On a brighter note, UNISWAP (UNI) also made some prior-end week promising gains.
On Friday, 9th November, UNI’s value sank to the bottom when it went as low as $6.10. However, as of this writing, UNI has made some recovery and, in the process, has gone as high as $6.27.
It is now trying to cover the gap between its spot market value and the targeted ceiling point of $6.35. This targeted ceiling point was last seen by UNI on 5th December.
For getting on to the point, UNI will need to make sure that its RSI tracking moves upwards and rejects declines. If the tracking is able to hit 56.70 then further gains are certain with the price moving ahead of $6.35.
According to the analysts, the current US economy and the Feds’ decisions are not going to help the dollar price in the future.
The country is expected to fall into recession, which would eventually weaken the trading price of the dollar.
With that happening, the trading prices of the cryptocurrencies will eventually move in an upward direction.
Investors may start investing heavily in Bitcoin considering it a hedge against the weakening economy. This may eventually help push the trading price of Bitcoin over the $20k barrier.