Ethereum and the broader crypto market jumped – Capital Street FX
14 Dec 2022
Ethereum and the broader crypto market jumped after the latest CPI Report indicated that inflation is cooling.
Ether (ETH) rallied 6.3% to $1,350, mimicking a similar failed attempt that took place on Nov. 10. Despite reaching the highest level in 33 days, the gains were not enough to instil confidence in traders according to two key derivatives metrics.
The market’s largest two cryptocurrencies in Bitcoin and Ethereum have both enjoyed mild gains on the heels of the latest Consumer Price Index (CPI) report.
Insofar as these figures report on the extent of inflation in the American economy, the Federal Reserve usually reacts by raising or lowering interest rates. Of late, the Fed has raised rates at an unprecedented pace to reel in inflation. Given the evidence that inflation is slowing as well as recent statements from the Fed last month, it is likely it will continue to raise rates but perhaps not as firmly.
The negative news Flow continued as the United States Securities and Exchange Commission (SEC) filed charges against Sam Bankman-Fried, the former CEO of now-bankrupt FTX crypto exchange. The fresh charges come just a day after his arrest by Bahamian authorities at the request of the U.S. government.