Crypto market remains active as we get close to expected date
Yesterday was a day with very important agenda items for the markets. After the inflation figures for March announced in the USA, and the Ethereum Shanghai Upgrade that took place at night.
We left behind a Wednesday with a very busy agenda. Both the important macro data from the USA and the Ethereum Shanghai (Shapella) that took place were hot items on the agenda. First of all, annual inflation in the USA decreased from 6% to 5% in March. Expectations were for inflation to decline to 5.2%. Therefore, the inflation figure, which was lower than expected, had a positive effect on the market in the first place.
Crypto markets are quite active
Bitcoin rose again to the $30,400 levels. Ethereum moved to $1950. However, the announcement of core inflation as 5.6%, above the headline inflation of 5%, made the market think that there might be an inertia on inflation. In addition, the “Super Core” inflation, which excludes housing from the core, the new focus, increased by 3.7% annually with a monthly increase of 0.3%. Last month, the monthly increase in super-core inflation was 0.2%. It was 0.3% in March. Since we do not see any further decline here, the FED will not pass in May.
By continuing to monitor this data carefully, it will be decided whether the 25 basis point rate hike in May will be the last. As a matter of fact, our analysis as an institution showed that inflation in the USA could be stubborn at the levels of 4% and 5%, and at this point, stressful, determined and difficult days await the FED. At the moment, preliminary data also show that the US has a long way to go in bringing inflation to the target level of 2% (this target may be updated and increased in the coming period).
