US equities experienced another significant surge following the recent Consumer Price Index (CPI) release, with all major indices—the S&P 500, Nasdaq, and Dow Jones—reaching new all-time highs. The robust performance in the stock market has prompted discussions around monetary policy, particularly as the US dollar continues to face challenges. Market participants are increasingly speculating on a potential 50 basis point cut from the Federal Open Market Committee (FOMC), though these expectations remain fluid and subject to change.
Immediately after the CPI data was released, there was some initial adjustment in the market pricing; however, the confidence in a rate cut quickly rebounded, with odds now hovering just above 10%. Traders are keeping a keen eye on insights from key financial journalists, including the Wall Street Journal’s Timiraos, who is often regarded as a reliable source for pre-FOMC Federal Reserve insights.
In stark contrast to the bullish equities market, cryptocurrencies have struggled to keep pace with the broader risk-on sentiment. Bitcoin has made a notable recovery from recent lows near $108,000, yet Ethereum is still working to regain upward momentum. Other altcoins and the broader crypto landscape have not yet shown the same resilience as seen in stocks and other risk assets during the trading sessions.
As traders now shift their focus to the upcoming FOMC decision next week, the technical outlook for cryptocurrencies is being closely monitored. The digital asset markets are anticipated to react to any shifts in monetary policy; thus, an analysis of the current crypto market alongside a multi-timeframe assessment of Ethereum will be crucial for understanding the potential trajectory ahead.
