- Market-friendly United States CPI report saw BTC revisit the $18K value area. Today’s Fed Reserve, Federal Chair Powell, and economic projects will offer direction for the risky markets.
- BTC gained 3.23% on Tuesday to close at $17,785. Meanwhile, the crypto revisited $18K after staying beneath the mark since 10 November.
- Binance news remained in the back seat as the U.S. CPI data drove demand for risk assets.
- The Fear and Greed Index reacted to BTC’s $18K move with an upside to 30/100 from 27/100.
Improved market sentiment saw Bitcoin gaining 3.23% yesterday, extending Monday’s +0.70% uptick to close at around $17,785. Meanwhile, the leading digital coin by value revisited $18K for the initial time since 10 November while dodging sub-$17K.
Downsides early on Tuesday saw BTC plunging to a $17,102 mid-morning low. Nevertheless, the crypto steered from the first foothold of $16,894 to soar toward $18K in the afternoon. Bitcoin overpowered the massive resistance zones before sliding to sub-$17.7K. Meanwhile, the drop had the token sliding through the 3rd crucial resistance of $17,892 to close yesterday at $17,785.
NASDAQ Index and U.S CPI Data Offer Bitcoin Support
The highly awaited United States CPI data triggered demand for risky products yesterday. Softer-than-anticipated inflation numbers amplified forecasts of a Fed pivot in December and a less violent interest rate route.
November saw the United States’ yearly inflation softening to 7.1% from 7.7% versus the predicted decline of 7.3%. Meanwhile, the numbers had the chance of a 75bp rate increase falling to 17% from Monday’s 26.5% probability.
The bets of Fed pivot in December supported S&P 500 and NASDAQ Index, which gained 0.73% and 1.01%, respectively. Meantime, sub-7% could have ensured massive gains and increased bets of a short-term pause on rate hikes.
Investors Ignore Binance News on Fed
Binance news remained on the back seat yesterday, regardless of updates of the United States watchdogs planning to charge the exchange with fiscal crimes. Bias toward the exchange news and the recent reserves reports allegedly triggered an uptick in withdrawals, heightening liquidity concerns.
However, the market didn’t focus on that. Binance’s CZ tweeted that the exchange saw withdrawals worth about $1.14 billion. However, he added that it’s Business usual as exchanges sometimes deal with massive deposits or withdrawals. He said that centralized exchanges should have stress test withdrawals. Though some business will find these tests costly, it maintains industry health.
Fed Reserve and Powell On Focus
Today’s attention changes to the Fed and the last interest rate move for 2022. While investors expect a 50bp hike, the FOMX projection and Chair Powell’s remarks will likely bring more influence. Less pessimism on interest rates, a soft landing, and downside inflation forecast revisions will offer Bitcoin and the overall crypto marketplace support. NASDAQ mini lost 4 points this morning.
Fear and Greed Index Climbs on BTC’s $18K Return
Today saw the Bitcoin Fear and Greed Index hitting 30/100 from 27/100. That reflected sentiment toward the recent Binance news while reacting to the United States CPI data & the NASDAQ. Moreover, BTC responded to the soft-than-anticipated U.S. CPI by revisiting $18K. That came as markets predicted a less violent rate trajectory.
Nevertheless, today’s Fed Chair talk, Federal rate decision, and FOMC economic indicators will determine short-term trends. Escaping sub-20/100 is crucial in the short term. Meanwhile, bulls should target the 6 November peak (pre-FTX fall) at 40/100 to clear the way for a BTC to explore $20K.