Inflation numbers have been followed by a wide audience for a long time. Now we are slowly approaching the end of this decision. Now that the moment of decision has arrived, we can analyze together how the cryptocurrency exchanges will follow.
US inflation data announced!
The expected inflation data has arrived, and expectations for the Fed meeting on March 22 have already formed. What impact will cryptocurrencies have?
Cryptocurrency markets have been focused for weeks on the latest US inflation statistics, which will be released today. A few days ago, volatility started to rise. In addition to the drop caused by the SEC investigation, many investors reduced their inflation-related risks. As a result, the RSI value dropped significantly. Bitcoin price dropped below the support level of $21,400.
US Inflation Figures
In January, the value of cryptocurrencies jumped as inflation figures for the previous three months fell short of forecasts. In anticipation that the Fed would ease monetary policy in the face of rising inflation, billions of dollars worth of bitcoin were bought in a matter of hours. The risk markets are extremely bullish right now, but we are in a dangerous scenario as the DXY has crossed the 103.5 support level. It was very important that today’s statistics were lower than 6.2% year-on-year. The annual inflation rate for December, announced in January, was 6.4%. How high was inflation today and what does the future of cryptocurrencies look like?
6.4% US inflation data announced: Expected: 6.2%; Realized: 6.5%.
After the announcement, the bitcoin price dropped significantly to $21,600. Three months later, inflation was 0.2% above forecasts, which is not desirable, but that’s not all. The result is still 0.1 percent below the annual inflation rate reported last month. So, technically, inflation continues to decline. With current inflation statistics beating forecasts and regulatory pressure on cryptocurrencies, we can better see the significance of the days ahead. If there are no major surprises in the coming days, the king cryptocurrency could move towards the support at $20,900.
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