DeFiAlchemist
Bitcoin's sharp surge today may seem abrupt, but the logic is quite clear. Breaking it down, there are three main forces at play.
First is the macroeconomic shift. The US December CPI increased by 2.7% year-on-year, fully within expectations, indicating that inflation has finally stabilized and is no longer running wild. With this, the story of aggressive rate hikes by the Federal Reserve can be set aside for now, and the market's previously assumed room for rate cuts remains intact. For all risk assets, this is like the darkest cloud overhead finally dispersing.
Second is the erosion of trust
First is the macroeconomic shift. The US December CPI increased by 2.7% year-on-year, fully within expectations, indicating that inflation has finally stabilized and is no longer running wild. With this, the story of aggressive rate hikes by the Federal Reserve can be set aside for now, and the market's previously assumed room for rate cuts remains intact. For all risk assets, this is like the darkest cloud overhead finally dispersing.
Second is the erosion of trust
BTC2,96%