Bitcoin and other altcoins, such as Cardano, BNB, and Solana, remained in a tight range on Monday morning as crypto investors waited for the US inflation data scheduled for Wednesday and Donald Trump’s inauguration.
Cardano, BNB, Solana, and altcoins and US inflation data
The price of Bitcoin was trading below $95,000, while the prices of these altcoins—except BNB—have moved into a bear market, falling by over 20% from their highest levels in December.
The ongoing softness in the crypto industry also mirrors that of the stock market. For example, on Friday, the Dow Jones and Nasdaq 100 indices dropped by over 300 points after the red-hot December nonfarm payroll (NFP) data.
This decline is mostly because of the soaring US dollar and US government bond yields amid rising odds that the Federal Reserve will maintain a hawkish tone. The US dollar index (DXY) soared to $110, its highest level in two years. Similarly, the 30-year and 5-year government bond yields surged.
Therefore, the upcoming US inflation data will be in focus because the Fed has hinted that it is focusing on the report. Minutes released on Wednesday showed that most officials were highly concerned that inflation has gotten sticky and entrenched in the economy.
Economists expect the headline Consumer Price Index (CPI) to move from 2.7% in November to 2.9% in December. Core inflation is expected to remain above 3.3%.
As such, most officials have hinted that they will be more hawkish this year. The bond market anticipates just two rate cuts, with the first one expected to come in July.
Bitcoin and altcoins like Cardano, Solana, and BNB often do well when the Fed has embraced a more dovish tone. Indeed, Mark Zandi, the chief economist at Moody’s, has warned that the soaring bond yields could lead to a crash of the stock and crypto market this year.
Donald Trump inauguration ahead
This week will also be important for Bitcoin and other altcoins because of the upcoming Donald Trump inauguration, which will happen on January 20th. Some crypto analysts anticipate these coins will rise ahead of this inauguration and the eventual Gary Gensler resignation.
Trump has pledged to be a more crypto-friendly president. Arkham data shows that his crypto portfolio is worth almost $20 million. He has also launched World Liberty Financial, which has raised millions of dollars.
Also, there are signs that he will sign a Strategic Bitcoin Reserve as he works to make the US the crypto capital of the world. Therefore, Bitcoin and other altcoins may have some volatility ahead of inauguration.
