Last week, the CPI figures for the UK and the eurozone were announced. CPI figures for the UK increased from 9.1 percent to 9.4 percent, while those for the Eurozone surged from 8.1 percent to 8.6 percent. As a result, inflation in the United Kingdom has reached a new 40-year high .
In our last market update, we mentioned a possible short-term downtrend for the dollar index due to a strong weekly/monthly supply zone. This week, we saw that pullback unfold, sending bitcoin prices up 15% and breaking through the $23k level.
Ethereum, on the other hand, saw an increase of around 30%. The market capitalization of the crypto market has now grown by $100 billion and has once again surpassed the one trillion mark.
Bitcoin is currently trading in no man’s land and attempting to climb above its 50-day simple moving average (SMA) of $24,800. If momentum continues, we could see higher lows (HLs). However, if momentum fades, we may see a drop into the demand zone near $18k, which would erase all previous highs.
Next week will be dominated by the FOMC meeting on Wednesday. We expect a second rate hike of 75 basis points (0.75%) to curb inflation in the US. In this case, the Fed will raise the interest rate to a total of 2.25%. Borrowing costs will then return to a level last seen in 2018.