The S&P 500, gold and other assets trade near all-time highs while Bitcoin price remains pinned below $30,000. noshitcoins investigates how an uptick in inflation could impact BTC price.
The S&P 500 index is currently trading only 6% below its all-time high, which was reached in January 202. Traditionally, such a situation would be seen as a bullish sign for risk-on assets, including commodities and cryptocurrencies, but this time, it appears that investors have been using the stock market as a means of protection against the recent inflation surge, which sustained at over 4% between April 2021 and May 2023.
For Bitcoin and cryptocurrency investors, inflation has typically been viewed as a positive factor influencing the price, as evidenced by the previous all-time highs of $65,000 and $69,000 that occurred during a period of monetary expansion and increasing inflation in 2021. However, the current situation is different because inflation is making a comeback while the Federal Reserve has been effectively reducing liquidity in the system.
Economists predict that the Consumer Price Index for July, which will be revealed on Aug. 10, will be around 3.3%, surpassing the previous month’s figure of 3% and exceeding the central bank’s 2% target. Given the latest unemployment rate of 3.5% in June, nearing a 40-year low, the Fed moving toward tightening the economy becomes more certain.
Gold, a traditional safe haven, has struggled to surpass the $2,000 mark on multiple occasions since 2020, indicating a lack of confidence in its ability to hedge against risks.The real estate market has also been impacted, facing limited housing supply and rising mortgage rates, as evidenced by Redfin’s second-quarter revenue drop of 21% compared to the previous year. The company expects a further decline of 15% to 20% in transaction value for Q3.
Even traditional safe assets like bonds are losing some of their appeal due to the ongoing increase in the United States federal debt. Investment mogul and hedge fund billionaire Bill Ackman reportedly
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
BTC price meets CPI as volatility 'collapses' — 5 things to know in Bitcoin this weekBitcoin combines CPI with steady reaccumulation with BTC price still lacking volatility.
Consulte Mais informação »
CPI Preview: Bitcoin Unlikely to Get Bullish CatalystMarkets are already not expecting more rate hikes from the Fed this year and rate cuts as soon as February. Even soft CPI numbers this week might not serve as a bullish catalyst for bitcoin. SteveAlpher reports
Consulte Mais informação »
CPI Preview: Bitcoin Unlikely to Get Bullish Catalyst From July Inflation DataBitcoin bulls are not likely to find a positive catalyst from the July Consumer Price Index report, as economists expect a 0.2% increase on a monthly basis, the same as June. Year-over-year growth is forecast at 3.3%, up from 3% in June. Markets have already priced in rate cuts for 2024, and the Fed is not expected to make any more rate hikes this year.
Consulte Mais informação »
Cathie Wood predicts SEC simultaneously allowing multiple spot crypto ETFs: ReportARK Investment Management founder and CEO Cathie Wood predicts another delay in the approval of a spot Bitcoin ETF application by the SEC. This prediction aligns with a proposal by Grayscale, the company currently suing the SEC over its refusal to accept an application for its Bitcoin Trust to be converted to a spot Bitcoin ETF. Grayscale's legal team has requested the SEC to approve all proposed spot Bitcoin ETFs at the same time to prevent any advantage for one over another.
Consulte Mais informação »
USD/JPY traces mildly bid yields near 142.00, ignores hawkish BoJ concerns ahead of US CPIUSD/JPY traces mildly bid yields near 142.00, ignores hawkish BoJ concerns ahead of US CPI – by anilpanchal7 USDJPY BOJ Fed YieldCurve Inflation
Consulte Mais informação »
Asian Stock Market: Trades mixed, investors await Chinese/ Indian CPI dataAsian stock markets trade mixed on Monday following mixed US employment data. That said, the Nonfarm Payrolls in the US rose 187,000 in July, worse th
Consulte Mais informação »