Exchanges and cryptocurrencies are on the rise: the recovery of markets is a charge of confidence.
Open the Bitcoin and other cryptos price chart to understand how unusual the day has started for financial markets, since, albeit to a lesser extent, the main stock market indices are also experiencing a very exciting morning.
And all this despite the fact that a number of concerns that continue to keep the markets in suspense remain, and perhaps even intensified, starting with the Chinese issue and ending with the price of oil, given also the fact that there is no solution to the geopolitical issue on the horizon.
The most expected data on inflation in the United States
The most anticipated data of the week concerns inflation in the United States. What probably pushed the markets higher after the classic weekend break was this data on the US labor market, which turned out to be higher than expected, and the markets actually had no opportunity to adapt to this new situation.
At the same time, it was most likely a rebound due to excessive compression after the announcement of the ECB rate hike and in Frankfurt. There is nothing permanent about this, no matter how joyful it is, and it is really nice to see that Bitcoin exceeds $24,000 again, and Ethereum is trying to conquer $1,800.
So what should we expect?
Everyone expects to return to the market next Wednesday, when more accurate data on inflation in the United States, which remains one of the most important meters, will appear. They need to be monitored at this stage of the market and, in all likelihood, also in the short and medium term.
Elon Musk went so far as to say that the peak situation is already, in fact, over, and the data that may be more encouraging, at least in the US, in terms of the possibility of a return to normal.
Soon, data on the producer price index and applications for unemployment benefits will be released in the United States — other important data that can push or weigh down stock markets. However, for those who only look at European markets, it will be a rather quiet week, which cannot be otherwise, because what is happening in Europe is becoming less relevant week by week.
The most important data to pay attention to will remain inflation data, which will also have an impact on the Bitcoin and cryptocurrency markets, regardless of those self-appointed experts who believe that this market is operating in a bubble, protected from any news coming out of the markets.
Can the “rebound” be considered long-lasting?
A combination of declining inflation data and the resilience of the US labor market would be the perfect combination, perhaps to jump a few more percentage points higher. In a slow return to normal life, after several weeks of madness.
All in all, the ,market is still rather anxious and worried market, and any change of its move may become the order of the day. Therefore, with any approach, it is better to expose yourself to reasonable risk and avoid anything that may cost a significant part of the capital.