TL;DR
- The report on inflation in the United States shook the crypto market. The FED analyzes interest rates.
- Bitcoin managed to recover and rose by 4%. It is trading at $41,280.
- The major cryptocurrencies increased between 2% and 8%.
The financial market reacted strongly after the announcement of inflation data in the United States. In particular, the report on Personal Consumption Expenditures (PCE), considered a leading indicator of inflation and closely followed by the Federal Reserve (FED) in its interest rate decisions, set the tone.
Regarding the specific data announced in December, the Core Personal Consumption Expenditures Price Index (PCE) annual stood at 2.9%, slightly below the expected 3.0%. On the other hand, the monthly index was at 0.2%, meeting market expectations. This data is crucial as the PCE is considered the FED’s preferred indicator for assessing inflation, excluding food and energy.
The initial market reaction was evident, with Bitcoin (BTC) experiencing notable fluctuations. Despite the initial selling pressure, the flagship cryptocurrency managed to recover, reaching a value above $41,280 at the time of writing, a 4% increase in the last day, after falling to $38,000. Many other major digital assets followed a similar trajectory.
This is the Evolution of Prices of the Main Assets in the Crypto Market
Ethereum (ETH) rose by 3.31% and is trading at $2,256. BNB, on the other hand, climbed by 3.63% and is being traded at $302.90. Solana (SOL) experienced an excellent surge of 6.9%, currently valued at $92.05. Followed by XRP, with a more modest gain. Ripple’s token is trading at $0.5202 after a 2.78% increase. Behind it comes Cardano (ADA), currently trading at $0.4849, reflecting an approximate 4% growth. The biggest winner of the day so far was Avalanche (AVAX). The token is traded at $32.15 per unit, and its value rose by 8.2% in the last few hours. Dogecoin (DOGE) closes the top with its $0.07951 and a 2.75% increase.
The analysis of the main winners and losers in the cryptocurrency market in the last 24 hours reveals the inherent volatility in this space. Following the shake caused by the U.S. economic report, it is crucial to closely monitor price movements to identify the best investment opportunities.
