Summary
TLDR: The Federal Reserve’s preferred inflation gauge met expectations, causing stock futures to rebound. Bitcoin and ether continued their rally. Prices are slightly higher than last year, impacting rate cut expectations. Bitcoin and ether prices are on the rise, with analysts attributing it to various factors including interest in ETFs and the upcoming bitcoin halving cycle.
Key Points
1. The Federal Reserve’s preferred inflation gauge met expectations, leading to a rebound in stock futures. Bitcoin and ether also continued their rally on Thursday morning in New York.
2. January’s core personal consumer expenditures index showed a 0.4% month-over-month increase, with prices 2.8% higher than last year. This is above the Fed’s 2% target but slightly lower than December’s figure.
3. Fed fund futures indicate a 78% likelihood of interest rates being held through May, with the first rate cut expected in June. Bitcoin surpassed $63,000 and ether broke through $3,500, fueled by various factors such as interest in crypto ETFs and optimism about an ether spot product.