Bitcoin expects the U.S. Federal Reserve to ease monetary policy

On December 13, the price of bitcoin showed stronger gains than the S&P 500 and Nasdaq Composite indices.
A report from the U.S. Bureau of Labor Statistics that the November Consumer Price Index (CPI) rate was only 7.1% compared to November 2021 had a positive effect on the global financial market and the cryptosphere.
The European Union stock market, which caught this news at the end of trading on December 13, came out in the plus on almost all platforms. In the U.S., the S & P 500 and Nasdaq Composite rose most of the trading within 1%, but bitcoin once again showed high correlation with these indices, with a large “beta”. That is, as before, the price of bitcoin reacted to the growth of these indices by a more significant percentage increase, momentarily rising by 5% in the last 24 hours on December 13.
By early December 14, the rate of increase had slowed slightly, to 4.1%, and bitcoin itself was worth about $17,37,000. It was momentarily climbing as high as $17,88,000, pushing back from an early-week low of $16,979,000.
After U.S. prices were up 9.1% in June, the November data increasingly raises the chance that the U.S. economy has already passed the peak of inflation. If the same view prevails today, the outcome of the U.S. Federal Reserve’s two-day Open Market Committee meeting could see a smaller interest rate hike than the four times before, when it was raised by 0.75% each time.
The cryptocurrency market indicates that investors believe in the US Federal Reserve’s monetary policy easing in the foreseeable future, that is, the possibility of interest rate cuts starting in the coming months. That’s why cryptocurrency market capitalization rose 3% overnight, to $868.7 billion.
Meanwhile, former BitMEX cryptocurrency exchange head Arthur Hayes believes that next year the price of bitcoin will show greater investment return than the classic NYSE indexes, as he estimates the U.S. government debt market indicates that the U.S. economy will be in recession next year.

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