Bitcoin and Ether, the two largest cryptocurrencies, are showing stability with minimal fluctuations ahead of the release of the latest US inflation report. In the derivatives market, investors exhibit a cautiously optimistic trend characterized by financial adjustments, positive financing rates, and increased institutional participation. However, traders continue to pay a premium to hedge against short-term downside risks. The prices of Bitcoin and Ether are heavily influenced by global financial and economic factors, with the US inflation report often triggering market volatility as it signals potential changes in Federal Reserve monetary policy and interest rates. The current steadiness in the crypto market reflects expectations that there will be no unexpected rise in US inflation, providing some relief to financial markets. Nevertheless, the increased cost of downside protection indicates that parts of the market remain cautious and are attempting to mitigate potential bearish risks. Should the upcoming inflation data prove more severe than anticipated, it could lead to price corrections or rallies in cryptocurrencies, especially Bitcoin and Ether. Additionally, any changes in Federal Reserve interest rates will play a crucial role in determining market direction. Investors are advised to closely monitor US inflation figures and their global financial implications to avoid sudden market disruptions.
Source: coindesk
