On Monday, the crypto market stabilised as the US Dollar Index, gold, and stock markets rose and US Dollar Index fell ahead of Federal Reserve’s interest rate announcement.
The following is a summary of the information that you will find on this page.
- Crypto market has recovered some of the losses it suffered earlier.
- Bitcoin has increased to over $88,400 after a low intraday of $87,000.
- The US Dollar Index has fallen to its lowest point since November.
BitcoinBTCEthereum () rose from its intraday low price of $87,000 up to $88,400.ETHThe price of a dollar rose to $3000 and then approached its key resistance. Market capitalization for all coins has returned to $3 trillion.
The US Dollar Index tumbles, causing the crypto market to sway
The crypto market stabilized while investors evaluated the performance of various assets. The stock market tilted upwards, with the Dow Jones and the S&P 500 Indices rising by over 0.50%. The rally occurred as investors were waiting for the forthcoming elections. earnings season by Magnificent 7 companies Tesla, Microsoft Apple and Meta Platforms are all examples.
The prices of silver and gold have continued to increase. The gold price crossed the crucial resistance level of $5,000. Silver prices also continued to rise.
But the US Dollar Index, or DXY for short, has been slipping to its lowest levels since September of last year. As investors began to shift their focus towards gold, the dollar has dropped by 2.6% since it reached its high point this year.
Federal Reserve risks and shutdown of government
Next up is a decision by the Federal Reserve on interest rates. The majority of economists and Polymarket trader believe the Federal Reserve will leave interest rates between 3.50% to 3.75% unchanged.
This pause in interest rates will allow officials to assess the economic impact of three recent rate reductions. The pause is also necessary because the economy continues to do well and the unemployment rate has stabilized. Analysts believe the inflation has stabilized at around 2% and that the economic growth rate in the 4th quarter was 5%, after a 4,4% increase in the previous quarter.
The cryptocurrency market will also respond to the impending partial government shutdown. Polymarket data indicates that the odds of a shutdowICE, and Department of Homeland Security are causing more concern.
Donald Trump’s armada in the Middle East is posing a macro-risk. The odds on a possible attack against Iran continue to rise. A possible attack on Iran would result in higher oil prices, and an increased inflation risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
