The inflation cools down, but the crypto rally may not stop the shares

The inflation cools down, but the crypto rally may not stop the shares

The days of rapid rapid prices could be in the back mirror of the US economy according to the data of the consumer price index (CPI) published on Wednesday-perhaps a window for investors to re-enter risks.

vpi from July Report was 0.2 % below the forecasts and recorded a price increase of 9.1 % in June. Petrol and energy indices lost 7.7 % or 4.6 % in July. However, the higher food prices continued and recorded an increase of 1.1 %.

The core CPI key figure of the month, which excludes food and energy prices, rose by 0.3 % and was also below the expectations of the analysts.

cryptos and stocks recovered, with the Dow Jones Industrial Average increased by 500 points in New York by Wednesday afternoon and the technology -heavy Nasdaq rose by 2 %. Bitcoin and ether grew by 4 % or 10 %.

"Bitcoin could recover significantly if this broad risk rally continues," said Edward Moya, a senior market analyst at Oanda. "The majority of the crypto room is still skeptical about Bitcoin recreation, which began in mid-June, but Momentum dealers could pounce on this opportunity when Bitcoin increases over the $ 25,000 mark."

The report on Wednesday comes when Bitcoin begins to distance itself from the traditional markets after a month -long phase of trade. The correlation of Bitcoin with bonds and the NASDAQ 100 fell to a three -month low according to a new data report by the research company Kaiko.

JEFF DORMAN, Chief Investment Officer of the Arca company focused on Digital Assets, said that the decoupling between crypto and stocks has been taking for months, but is difficult to remember through wider and quickly moving macro shifts.

"We started with the idiosyncratic news about digital assets, around the idiosyncratic news; the collapse of Luna Vust, followed by the collapse of Three Arrows and Celsius, Blockfi, etc.," said Dorman. "We have really decoupled ourselves from stocks in the last two and a half months-you just couldn't say it because a large part of the time of events was about the same time as the Fed Pivot and these macro events."

Despite today's market movements, analysts are unsure how long a rally will take.

"The problem with Bärenmarkt rally, however, is that money will quickly accumulate if you think that an improvement is close, and this will cause hedge funds and other institutions to take a risk in a declining year to hunt profits," said Steven McClurg. Chief Investment Officer of the digital asset fund manager Valkyrie Investments. "We will probably increase at short notice, but an inverted interest curve with a spread of 38 basis points suggests that the long -term prospects are not good. There are harder times ahead, and dealers can only ignore for so long."

It is also important to take into account the collapse of the current market, said Dorman.

"We are back at an investment class of about one trillion dollar, but almost 20 % of which are stable coins, which is much more than last time we were at a trillion dollar a few years ago when stable coins turned out about 2 %," he said. "So you only have a really big bar position and not many places to put them on."

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The contribution "Inflation is cooling, but rally in crypto, Stocks May not last" is not a financial advice.