Daily Market Analysis and Forex News
Altcoins soar on softer US CPI
Risk assets rejoiced as the highly-anticipated US inflation came in below market expectations today.
The lower-than-expected CPI figures suggest that the Fed no longer has to keep raising its benchmark rates.
Such expectations are translating into further relief for riskier assets.
Looking specifically within the alt-coin space, at the time of writing:
- Polygon is soaring by 5%
- Solana has surged by 10%
- Avalanche climbed up 10%
Today’s gains are helping pare the losses from yesterday (Monday, 13 November), after crypto markets realised that the supposed filing by BlackRock for an XRP ETF turned out to be fake news.
Furthermore, technical forces had warranted a pullback.
Yesterday's technical pullback appear justified after many cryptos had enjoyed a stunning surge over the past three weeks.
Even after having cleared a lot of the froth in prices, AVALANCH’s 14-day relative strength index (RSI) continues to meet the textbook definition of “overbought” conditions.
Now trading around its highest levels since May 2023, AVALANCH may have to experience more of a technical pullback, in order to form a stronger base from which bulls can move prices sustainably higher.
Why have altcoins been climbing?
Broadly speaking, cryptos have managed to hold on to recent gains on hopes that the first Bitcoin ETF may be approved in just a matter of months.
This first-ever Bitcoin ETF, if approved, may grant greater and easier access into the crypto world for investors.
In other words, more mainstream acceptance of cryptocurrencies.
If those expected investor funds do actually flow in via ETFs, that may translate into a sustained climb for cryptocurrencies.
Until then, continued gains for altcoins would require risk-taking appetite to remain intact across global financial markets amid hopes that the Fed is truly done with raising its benchmark interest rates in this cycle.