• Fri. Oct 11th, 2024

ISM Data Release Boosts Crypto Economy

Jan 10, 2023

ISM Data Release

The crypto market is trending upward today and in accordance with the forecasts of market participants that inflation will be brought down.

The economies of Bitcoin, Ethereum, Solana, etc. along with the economies of altcoins are currently moving up. The boost came soon after the release of data by the Institute for Supply Management (ISM).

ISM data, which was released on 4th January 2023, suggested lowering manufacturers’/producers’ input prices by the US Federal Reserve. This cooling down of interest rates was in line with what the investors had expected.

Despite today’s rally, experts are questioning the ‘longevity’ of the rally because minutes of the meeting of the Federal Reserve are yet to be issued.

Investors are hence concerned about the Federal Reserve’s decision on whether it would be lowering or increasing the rates for the future.

Equity and Crypto Markets’ Response to ISM Data Release

Markets pertaining to equities as well as crypto were quick in responding to the ISM data release and the response was positive.

It is expected that nonfarm payroll data (due on 6th January) and reduced figures of the supply chain, would insist on softer rate hikes.

On the other hand, there may be hints in the minutes which could boost the markets further.

Crypto Market Gainers

However, the crypto market rally cannot be regarded as a major boost because relatively the market is still on the downside.

Yet, the rally was enough for allowing Ethereum to react positively in accumulating gains for crossing $1,253 i.e. a three-week high value.

Despite this achievement by Ethereum, investors seem to be under fears stemming from the ‘Grayscale Ethereum Trust’.

Bitcoin is still suffering from the lowest volatility level of all time, however, it managed to fetch some gains after the ISM data release. It is now been traded at a value of $16,801 as per the data of Cointelegraph.

Furthermore, it is expected that Bitcoin value gains may influence a boost in the altcoins’ economies.

Factors behind Today’s Rally

In the previous year, the crypto market slowed down mainly because of the high inflation rates. However, ISM data release points to a reasonable lowering of interest rates which in turn influenced the crypto market.

Fed Reserve’s Chairman had earlier stated that if interest rates were cooled off then there would be a substantial decline in inflation rates.

Since inflation has been reduced, as per the ISM data release, it is likely that the inflation rate would also be reduced. Even if inflation is not reduced substantially yet any further hikes wouldn’t be exorbitant but smaller.

Traders’ Celebrations

Currently, traders are celebrating the release of crucial economic data in the positive.

Meanwhile, traders are also concerned about risk events in the crypto industry which pose the fear of lowering economies of altcoins and Bitcoin.

However, Bitcoin futures are indicating that approximately 79% of traders are long-term while only 4% are short-term. This means that the majority of Bitcoin futures are long traders but Bitcoin’s volatility is still at its lowest ebb.

This could be a sign of a possible value surge for Bitcoin.

Bullish Momentum Hopes Reinforced

Today’s rally has subsequently reinforced the hope for bullish momentum in the markets of Bitcoin and Ethereum. The prices of both assets have moved in the upward direction.

The assets have performed really well and the communities for both the assets are hopeful their momentums will keep performing better.

Bullish momentum further finds support from crypto analysts who are of the view that more value surges are due.

This means that in the future, the trading prices of the major assets will continue gaining momentum and they will grow stronger in value.

More investors would like to participate in the rallies to pump the prices of the assets. This will work out as a major positive factor that would help push the price of these assets higher.

One set of analysts believes that many days in the near future would rather be volatile.

Don't Miss Out On Bitcoin Evolution!

The Top Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker