Markets Rally Ahead Of Fed As US Inflation Cools
Bitcoin and Ether Surge To 4-Week Highs
By: yyctrader
Markets
With all eyes on the Federal Reserve ahead of tomorrow’s crucial decision on interest rates, investors breathed a sigh of relief Tuesday after U.S. inflation numbers came in below expectations.
Consumer prices rose at an annualized 7.1% in November, according to the Bureau of Labor Statistics. That was well below the 7.3% analysts anticipated, and the 7.7% recorded in October.
Month-on-month inflation came in at 0.1%, and the Core CPI, which excludes food and energy due to their volatility, was an annualized 6%.
The S&P 500 and Nasdaq rallied more than 2% in midday trading Eastern Time before giving up some ground. Bitcoin and Ether climbed more than 3% and hit their highest levels since Nov. 10.
ETH Price + BTC Price, Source: The Defiant Terminal
Investors are hoping cooling inflation will prompt the U.S. central bank to ease up on future rate increases. Despite the data, the probability of a 0.5% hike tomorrow remains around 80%, according to CME FedWatch.
Top Gainers
Liquid staking giant Lido, layer 2 rollup Optimism, and layer 1 blockchain Avalanche are among the day’s best performers, each up around 10%
OP Price + LDO Price + AVAX Price, Source: The Defiant Terminal
Decentralized derivatives protocols GMX and Gains Network (GNS) are up 50% and 30%, respectively, in the past 30 days. The total value locked (TVL) on GMX has crossed $900M for the first time.
FTX’s collapse and the prevailing negative sentiment around centralized exchanges may be spurring traders to consider alternative platforms.
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