KEYTAKEAWAYS
- U.S. Bureau of Labor Statistics to Release December CPI Data
- BlackRock Head of Digital Assets: Bitcoin Adoption Still in Its Early Stages
- Correlation Between Bitcoin and Nasdaq 100 Reaches Highest Level Since 2022
CONTENT
U.S. BUREAU OF LABOR STATISTICS TO RELEASE DECEMBER CPI DATA
On January 15, the U.S. Bureau of Labor Statistics will release the unadjusted Consumer Price Index (CPI) annual rate for December 2024 at 8:30 AM New York time. The expected rate is 2.9%, up from the previous value of 2.7%.
Analysis:
The upcoming CPI data release is crucial as it provides insights into inflation trends in the U.S. economy. An increase in the CPI to 2.9% could signal rising inflationary pressures, potentially affecting the Federal Reserve’s monetary policy decisions.
For the cryptocurrency market, higher-than-expected inflation could bolster the narrative of Bitcoin and other cryptocurrencies as inflation hedges, potentially driving demand. Conversely, if the actual CPI comes in lower than expected, it may temper market expectations for further interest rate hikes, which could support risk assets, including cryptocurrencies, in the short term.
BLACKROCK HEAD OF DIGITAL ASSETS: BITCOIN ADOPTION STILL IN ITS EARLY STAGES
On January 15, Robbie Mitchnick, Head of Digital Assets at BlackRock, stated in an interview with Bloomberg, “Bitcoin adoption is still in its early stages.” He previously mentioned that certain events in the crypto industry resemble mishaps, and some cryptocurrency research and commentary treat Bitcoin as a risk asset, suggesting its trading behavior should be akin to stocks.
Analysis:
Mitchnick’s view highlights the ongoing debate about Bitcoin’s market positioning. Despite its potential as digital gold and a hedge asset, Bitcoin’s market performance often resembles that of risk assets, influenced by macroeconomic factors and investor sentiment.
His remark about the “early stage” underscores the future growth potential of Bitcoin and the broader crypto market while emphasizing the need for market participants to remain vigilant about volatility and risks posed by an immature market structure. For long-term investors, this could imply a continued balance of opportunities and risks.
CORRELATION BETWEEN BITCOIN AND NASDAQ 100 REACHES HIGHEST LEVEL SINCE 2022
On January 15, the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 Index reached approximately 0.70, the highest level in two years. The recent increase in sensitivity to interest rate changes highlights the importance of the upcoming CPI data.
Meanwhile, market-related volatility may further intensify in the days leading up to Trump’s inauguration. According to data from Derive.xyz, the proportion of bearish bets in the options market has risen, with investors hedging against potential increases in volatility and downside risks.
Analysis:
The high correlation between Bitcoin and the Nasdaq 100 Index indicates that Bitcoin, as a digital asset, is increasingly influenced by macroeconomic factors. The heightened sensitivity to interest rate changes and CPI data suggests that investors’ focus has expanded from traditional markets to the crypto market.
With Trump’s inauguration approaching, uncertainty is increasing, and the rise in bearish bets in the options market shows that market participants are taking protective measures against possible price fluctuations.
Also Read：
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