- Bitcoin surpassed $30,000 for the first time since June 2022, and is currently up more than 80% from December 31, 2022, far outperforming the Nasdaq 100 tech index’s 15% gain.
- On April 12, the Ethereum network will undergo a significant upgrade, so we can anticipate intense market activity.
- The jobs data for March came quite close to what economists had predicted. Nonetheless, the overall number of jobs created was the fewest since January 2022.
- The Federal Reserve’s initiatives to reduce labor demand in order to reduce inflation are beginning to bear fruit.
- Several nations have created strategies to replace the US dollar. Yet, the majority (60%) of the world’s reserves continue to be in US dollars.
- Investors are now paying careful attention to the CPI figure this week to see how well the Federal Reserve is doing in combating inflation.
The US dollar slipped on Tuesday after its strongest performance this month versus major rivals, as a stable US labor market boosted the argument for a Federal Reserve rate increase next month. At the same time, expectations for a rise in US interest rates in the coming months pushed Bitcoin above the $30,000 mark. It was the first time since June 2022, and is currently up more than 80% from December 31, far outperforming the Nasdaq 100 tech index’s 15% gain.
Investors in cryptocurrencies will be keeping an eye on important U.S. economic data this week, such as U.S. CPI, for hints on the Federal Reserve’s (Fed) policy decision on May 2-3.
Investors are expecting the U.S. Producer Price Index (PPI), Consumer Price Index (CPI), and Jobless Claims to continue their upward trend after Bitcoin’s 70% surge this year. In light of indications that the U.S. economy may be slowing down, the Federal Reserve said last month that it will take the matter into consideration. Analysts anticipate a further decline in U.S. CPI. When data is released on April 12th, a 0.3% CPI rise is anticipated.
Despite core U.S. CPI, which excludes food and energy costs, rising to a five-month high, data from February revealed that U.S. inflation was declining. In February, the CPI increased by 0.4%, with the cost of housing accounting for 70% of the increase. A wholesale inflation gauge, the Producer Price Index for the previous month fell by 0.1%.
The minutes of the March 21–22 meeting of the Fed’s Open Markets Committee will be made public on April 13. The events that led to the March meeting’s 25 basis point hike in interest rates will be covered in the minutes. The next significant hint for Fed policy direction will be the consumer price index (CPI), which is coming on Wednesday, Bitcoin is anticipated to experience some volatility.
Bitcoin's Spent Output Profit Ratio (SOPR) has surpassed 1.0
The SOPR (Spent Output Profit Ratio) indicator gives information on the macroeconomic climate, profitability, and losses incurred during a certain period of time. It displays the total amount of realized profit for all coins transferred on-chain.
The ratio between the fiat value at the moment of UTXO creation and the fiat value at the time the UTXO is spent is used to calculate SOPR, which solely takes into account coins transferred throughout the period being analyzed (daily, hourly, etc.). In general, investors sell their Bitcoin at a profit when aSOPR is higher than 1, and the opposite is also true. In a bull market, investors often avoid selling at a loss. Due to the huge reduction in supply, the price is under pressure to increase. The Bitcoin aSOPR soared over 1.0 on March 30 for the first time in almost a year, and as of April 10, it has been trending higher. Since that aSOPR breaks over 1 are often followed by an exponential increase in the price of bitcoin, this indicates strong bullish momentum.