The headline inflation rate in the United States fell to its lowest since late 2021 in December, encouraging hopes that the Federal Reserve may soon stop raising interest rates.
It could be that this decidedly downward trend in inflation could spur purchases even toward the more speculative and technological assets. Since BTC is often likened to a technology that is very much stock market-linked to the Nasdaq it is possible that it could actually benefit from a definite price increase in the coming months according to our analysts.
The crypto market's reaction to the news of the January CPI MoM was abnormal: a strong wave of volatility enveloped the market, which in previous days had seemed to have finally found an underlying direction by breaking through the $18,000 mark.
OBV (on balance volume) signals a major increase in volumes following the release of inflation data. Indeed, it appears that the market has well accepted the U.S. CPI data by associating it with a bullish signal for all speculative financial markets, including cryptos.
