Crypto prices dipped ahead of the release of key U.S. inflation data for March, which is one of the key metrics the U.S. Federal Reserve is tracking ahead of its next interest rate decision on May 3. Nomura estimates put core inflation (less food and energy) up 5.7% year-on-year, slightly higher than consensus estimates of 5.6% and above last month's 5.5%. The probability of another 25 basis point increase in May might rise if inflation increases, but financial stress in the banking sector could negate the need for this. If inflation comes in lower than expected, it will likely take off the hike expectations and "lead to a risk-asset rally," according to crypto trading firm QCP Digital. Meanwhile, bitcoin and the broader crypto market rallied over the weekend and into Monday, with ether reaching its highest point in nine months, but bitcoin struggled to hold much above $30,000 in the early hours.
(By Adam Morgan McCarthy)
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