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The capitalization of the crypto-currency market increased by 5% over the day, demonstrating the maximum efforts of the bulls to get out of the sideways movement in which digital currencies have been staying for a week. With the opening of US exchanges, digital currencies were covered by a wave of sales, after the publication of important economic statistics.
The US consumer confidence index and the level of new home sales turned out to be higher than analysts’ forecasts.
Both indicators show the Fed enough resilience of the economy to further increase the interest rate at a record pace. The tightening of monetary policy is prolonging the crypto winter, despite the resilience demonstrated by cryptocurrencies to the fall of stock markets.
Without an influx of investment, there will be no full-fledged rally in digital currencies. Investors benefit from moving capital into bonds, whose high rates over the years will provide premium and risk-free returns after the inevitable decline in inflation.
Yesterday’s sell-off in the cryptocurrency market indicates a statistical inversion. Positive data on US labor market indicators, which will be released on Thursday and next week, will also lead to cryptocurrency sales. This is a key statistic for the Fed, which is taken into account when deciding on the size of the rate hike.
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