Yesterday, the release of the US Inflation rate came out lower than the forecasts (0.1% vs. 0.3%). The soft figures pulled the US dollar index down by almost 1%. At the same time, S&P500, EURUSD, and gold strengthened. Today, the Fed will hold a meeting at 21:00 GMT+3. The Federal Reserve is widely expected to raise the interest rate by 50 basis points.
Tim Draper, billionaire, venture investor: “I mean, just by that alone, just that they cost you less, it’s going to be better for people. And so they’re going to move to crypto, and they’re going to go away from the political currency – they call it fiat”
On Monday, Bitcoin extended losses and fell below $3,700. The recovery for the digital asset started in the middle of the week. Bitcoin rose above the $4,300 level on Wednesday. However, the correction turned out to be short-lived and the traders’ uncertainties formed a red Doji candlestick on Thursday. For now, we can see a limited volatility of the cryptocurrency. If Bitcoin is supported by bullish investors, it can rise towards the next significant resistance at $4,750. If uncertainties around the crypto market continue, it can fall to the support at $3,660. Was it a bearish trap or a rebound?
In other news:
- Amazon launched a platform for the creation of the blockchain network based on Hyperledger Fabric or Ethereum;
- The new WTO release said the blockchain would carry out the international economy to a new level in 10-15 years.
- Cryptocurrency wallet Copay was hacked on Monday and now all the private keys belong to hackers. The users were suggested to update the application and withdraw money to a different wallet.
- NASDAQ Bitcoin futures are anticipated to be out in the first quarter of 2019.
- Financial Ministry of the US applied sanctions against two bitcoin addresses, which belong to the residents of Iran or connected with the bypass of the sanctions.
- CFTC of the US released an instruction for developers and users of smart-contracts. In short, if it is used for breaking the law, users will be responsible for it.
- The Ohio state authorities allowed companies to pay taxes in Bitcoins
- British financial regulator handles cases against 50 crypto companies which operate without a license.
- New investment crypto product Amun Crypto Basket ETP has the biggest trade volume on the Swiss trading exchange.
Goldman Sachs turns bullish on China, news from ECB, and Twitter's drama - everything you need to know in one place!
The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.