After expected inflation data in the USA in bitcoin There was a $1800 dump.
In the USA, January inflation increased by 0.6%, while annual inflation was announced as 7.5%. We stated that the expectation was 7.3%. Inflation, which exceeded expectations, caused hard sales in the markets.
DXY
After the inflation data, the strength of the dollar increased, while DXY approached 96 levels again.
US 10 Yearbooks
The US 10-year bond yields also rose to 2% after the inflation data.
Bitcoin and Exchanges
The jump in DXY and US bonds, US futures and in bitcoin caused a sharp decline. Bitcoin, which went up to $ 45,000 during the day, retraced to $ 43300, while Nasdaq futures retreated by 1.5% and S&P 500 futures by 1%.
What Are We Pricing?
The Fed’s interest rate hike in March is almost certain. However, at this stage, it remains unclear how the knob of the scale will be adjusted while the interest rate is increased.
The fact that the inflation data is above the expectations fuels the concerns that the FED may miss the scale and raise the interest rates above the expectations.
Fed Chairman Powell said at the last meeting that even if they raise interest rates, the low interest rate environment will continue to be permanent. We will see in March if these statements of Powell were a rosy lie told to restrain the markets.
Now at 17.30, the reaction of the stock markets to the inflation data will be followed.