Optimism in crypto markets following US inflation numbers

BITCOIN briefly dipped in the hours after yesterday’s release of US inflation numbers, but quickly rebounded, gaining more than 2% overnight alongside a rally in US stocks.

The leading cryptocurrency is currently trading around $58,100. Ethereum, meanwhile, is flat this morning, but other cryptocurrencies like Cardano and Near are posting notable gains on the Luno platform.

The market’s technical indicators are flashing mixed signals. Bitcoin's Relative Strength Index (RSI) has improved in recent days, suggesting some buyer interest. However, the Fear and Greed Index continues to hover in 'Fear', reflecting ongoing caution among traders.

Yesterday’s Consumer Price Index data for August came in largely as expected, marking the slowest inflation increase since February 2021. Still, concerns over elevated levels in the housing and services sectors persist.

Analysts now predict the Federal Reserve will take a cautious approach with a 25 basis point (0.25%) rate cut later this month, rather than the more aggressive 0.5% cut some had anticipated. Could this measured move by the Fed be the catalyst that crypto bulls have been waiting for? Read more below. 

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In the Markets

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Total crypto market cap

$2.04 trillion (+2.84%)

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What Bitcoin did yesterday

Daily high $57,975 |  Daily low $55,576

Bitcoin market capitalisation

$1.14 trillion (57.44% of market)

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Bitcoin 24-hour trading volume

$36.8 billion +17%)

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SP500

+1.07%

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Fear and Greed Index

31 (Fear) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

58

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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