BTC maintains its position beyond $92,000 while the anticipated December inflation report aligns with expectations. Although altcoins show modest gains, the upcoming critical 24 hours could be pivotal as crucial developments throughout January nearly reach completion. The Supreme Court’s tariff decision will usher in notable changes, while the interest rate decision at the month’s end is expected to see rates remain stable.
Current State of Cryptocurrency
With core inflation slightly below expectations, BTC experiences a modest rise. However, last week’s employment report suggests that immediate interest rate cuts are not likely. Had the recent data drastically underperformed expectations, prospects for rate cuts might have increased.
In Japan, unease prevails as Takaichi’s early election plans strengthen the Yen. Investors brace for potential expansive fiscal policies. Meanwhile, the US dollar maintains stability amongst G10 currencies, despite a narrow trading range. With Trump’s announcement of new tariffs on imports from Iran-trading countries, tensions with China could flare, impacting cryptocurrencies negatively.
The ETHBTC pair reflects the current state of altcoins. Although the 0.032 level remains supported, the inability to test the 0.04 level for 125 days has led to painful lows across the altcoin spectrum.
Major altcoins like XRP and SOL Coin have yet to reclaim significant levels. With the tariff decision pending, trading volumes remain weak as investors adopt a “wait and see” approach.
Today’s Key Developments
The inflation report has been released, and upcoming earnings reports throughout the week are expected to provide index support, particularly from banks. At 18:00, Fed member Musalem will speak about economic policy and outlook on the MNI Webcast. Insights on the latest employment and inflation data will be crucial.
At 20:30, Trump will participate in a site visit and factory tour, with a subsequent 22:00 speech at the Detroit Economic Club focused on the economy. With Powell expressing concerns over the independence of the institution, Trump’s comments will be significant. Fed’s Barkin is scheduled to address the CFO Society in Washington at midnight.
