Bitcoin ( BTC), which gained $24,000, failed to reach new multi-month highs Aug. 10, as the United States inflation seemed to be slowing.
CPI reduces risk assets, much-needed slack
While Bitstamp managed $24,179, BTC/USD did not generate enough momentum to challenge levels from the previous day.
However, traders felt relief as falling inflation indicated to the Federal Reserve that less aggressive interest rates are needed moving forward. This should help to reduce the risk of crypto assets.
CPI inflation was 8.5% year-on-year, 0.2% lower than expected, and month-on–month, it was the same as June.
Sir Powell, I know what you are doing. pic.twitter.com/qwMbdtriNm
Arthur Hayes (@CryptoHayes).
August 10, 2022
“Markets have a clear run until regional Fed survey in a few weeks. “I expect them to be significantly weaker,” Raoul Pal (founder of Global Macro Investor), said.
“Peak inflation leads to peak growth anxiety. I believe markets will respond positively to weak growth.
William Clemente, Blockware’s lead insights analyst, was cautious and described the rally of risk assets as continuing “short-term” on the back cover of the print.
Faith in the Fed cooling down its aggressive rate-hike cycle has been rewarded with 50 basis points in place of 75 basis point bets.
“Jul CPI is bullish, especially for tech stocks,” Holger Zschaepitz has added.
As Ethereum beats the multi-month record, Dollar falls in step
Ether ( ETH) was the one who celebrated the CPI event better than Bitcoin. It capitalized on the mood and posted its highest levels since June 7th.
The ETH/USD pair gained 11.5% over the course of the day to $1,847. This fuels hopes that the crypto rally is more than just a fakeout.
“Some people forget that the market can pump, and it really is not a trap.” Josh Rager , a trader and commentator, tweeted.
The U.S. Dollar was the clear loser of the day. It extended its downtrend since mid-July in the CPI print.
According to Pierre, a popular trader, the U.S. dollar Index (DXY), lost 1.3% and is now targeting its 100 day moving average.
$DXY – D1
It’s hard to make it more clear/clearer. I think simple TA works on US Ponzi too.
— Bierre (@pierre_crypt0)
August 10, 2022
was founded by NorthmanTrader analytics firm . Sven Henrich described DXY “getting crushed.”
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.