Weak day for cryptocurrencies, which pay their correlation with the equity trend, hit by sales after the publication of the US inflation data.
According to reports from the Coindesk website, Bitcoin still managed to regain the $ 43,500 threshold after falling to $ 42,900 at the start of trading on the Asian exchanges. Resistance at $ 45,500 should be monitored.
For some, Bitcoin could find its bullish streak in February, even if exposed to sales in moments of risk off.
Indeed, Singapore-based investment firm QCP Capital believes that the correlation between cryptocurrencies and equities is not always present:
“At the end of last week, crypto prices rose even though the Nasdaq fell. This does not mean that the cryptocurrency trend has disconnected from that of the Nasdaq. Rather, it indicates that there is a targeted and tangible demand for the asset (crypto ) “.
In January, the US consumer price index rose to + 7.5% yoy in January (consensus was + 7.2%), on the new 40-year high, after + 7% of December. On a monthly basis, the consumer price index rose at the pace of 0.6%, as in December, more than the estimated + 0.5%.
Core inflation also picked up pace, with a rise of 6%, after the previous + 5.5% and over the + 5.9% expected by the consensus. On a monthly basis, the trend of the core component was an increase of 0.6%, as in December, but above the expected + 0.5%.
In January, inflation as measured by the consumer price index soared in the United States by 7.5%, more than expected, which was for a 7.3% increase. On a monthly basis, the US consumer price index rose at the rate of 0.6%, as in December, but more than the estimated + 0.5%.
The reaction of the US stock market was immediate, discounting the prospects of an even more hawkish Fed and, consequently, the jump in Treasury rates, with the ten-year rates exceeding the 2% threshold for the first time since 2019, climbing up to 2.05%. The Nasdaq was particularly bad, slipping by 2.1% to 14,185.64.