U.S. Inflation Numbers In Line With Expectations, Bitcoin (BTC) Continues to Trade Above $43,500
On Wednesday, January 12, the United States has reported the highest inflation at 7% in over four decades since 1982. Well, this doesn’t seem to have a greater impact on the Bitcoin price as it continues to trade above $43,500 moving further away from the death cross.
As of press time, Bitcoin is trading 2.45% up at a price of $43,644 with a market cap of $827 billion. As we reported, U.S. inflation would play a key role in deciding the Bitcoin momentum. Although the inflation number is pretty high, it’s quite in line with what was expected. Matt Maley, chief market strategist for Miller Tabak + Co told Bloomberg:
“The fact the inflation number was not as high as some of the whisper numbers should help risk assets of all stripes today”.
Inflation largely in line. It's ok. https://t.co/JSJNV10hz8
— Alex Krüger (@krugermacro) January 12, 2022
It means that although the Federal Reserve will continue with its quantitative tightening (QT) program, there’s a fair expectation that it won’t turn aggressive further from its current stand. We are expecting four interest rate hikes this year in 2022 that might suck liquidity out of the crypto market and thus lead to market volatility.
However, the contrarian approach also holds true at the same time that more and more people will participate in the crypto space to get inflation-beating returns. Thus, Bitcoin is set to emerge as a strong inflation hedge going ahead.
Altcoins Pose A Strong Show
the altcoin space is leading to a very strong performance. After a sloppy last week, Ethereum (ETH) has bounced back again above the $3,350 level. Binance Coin (BNB) has also registered strong 4.5% gains while Solana (SOL) has registered 7% gains reclaiming $150 once again.
In the top ten, Terra’s LUNA remains an outperformer gaining over 10% and moving past $80 levels. The broader cryptocurrency market has also gained 4% over the last 24 hours and is currently above $2.07 trillion. This week’s closing will be crucial in determining the market momentum over the next month.
Please follow CryptoGape on Google News for latest updates
- Changpeng Zhao Comeback? PolyMarket Set 62% Odds of Binance Return by December Following Trump Pardon
- Matrixport Predicts Market Direction as $6B Bitcoin, Ethereum, XRP Options Expire Today
- Why is Crypto Market Up Today (Oct 24)
- Breaking: 21Shares Amends Sui ETF with Staking, Nasdaq Listing, Other Key Details
- Binance’s Changpeng Zhao Takes on Senator Elizabeth Warren On False “Fraud” Allegations
- PUMP Price Set for Lift-Off as Whales Return With Multi-Million Dollar Buys
- Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide
- Solana Price Prediction as Osprey’s S-1 Filing and Hong Kong’s ETF Launch Fuel Reversal Hopes- Is $250 Next?
- Ethereum Price Poised for Breakout as Wyckoff Re-Accumulation Meets BlackRock’s $110M Purchase
- BNB Price Prediction as Analysts Eye $1500 Ahead of Fresh Coinbase and Robinhood Listings
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
