Bitcoin (BTC) is back above $56,000, having dropped below $54,000 over the weekend following a weak August jobs report that suggested the US economy was still at risk of a recession. Alongside BTC price, crypto stocks have also experienced a notable rebound. The US stock market notably suffered a loss of over $1.05 trillion last week, which affected these stocks. BTC and these crypto stocks are still not in the clear, especially with the US CPI set to be released this week.
However, market experts like Arthur Hayes indicated that investors do not need to panic, which looks to have allayed fears following the weekend sell-offs.
Nvidia, MicroStrategy, Crypto Stocks Rebound
Crypto stocks like Coinbase stock have rebounded with Bitcoin, with the flagship crypto back above $56,000. COIN price is up over 3% since the market opened on Monday, September 9.
MicroStrategy, also widely treated as a crypto stock due to the software company’s exposure to BTC, has also witnessed a price recovery. MSTR stock price is up over 4.50% since the market opened for trading.
Meanwhile, US Bitcoin mining companies like Marathon Digital Holdings and Riot Platforms are also up over 3% and 2% since the market opened. Given their correlation, it’s unsurprising that these crypto stocks have rebounded with Bitcoin.
Meanwhile, US stocks like Nvidia’s stock, which led last week’s bloodbath in the stock market, have also rallied. NVDA is up over 2% since the market opened on Monday.
This is notable, considering how BTC price correlates with these stocks. As such, the flagship crypto could further rally as these blue-chip stocks recover. However, it is worth mentioning that September has historically been a bearish month for these stocks and BTC. Therefore, it remains to be seen whether this is just a relief bounce or a bullish reversal.
US CPI To Determine Fate Of Bitcoin
Upcoming macroeconomic events this week are also set to determine the fate of BTC price and these stocks. This year, macroeconomic events have greatly affected these assets as investors continue to gauge their confidence in these risk assets based on the US economy’s performance.
The US economy will again be in the spotlight this week with the August Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data set to be released. The US CPI data will be released on Wednesday, September 11, while the PPI data will be released on Thursday, September 12.
In addition to providing insights into the current state of the US economy, these inflation data will suggest what steps the US Federal Reserve will likely take at its anticipated FOMC meeting between September 17 and 18 next week. For now, the Fed is expected to cut interest rates, which could provide relief for the market as investors gain more confidence to invest in Bitcoin and crypto stocks.
According to the CME FedWatch Tool, traders predict that there is a 71% chance that the US Fed cuts interest rates by 25 basis points (bps) while there is a 29% chance that they cut rates by 50 bps.
As per CoinGape analysis, Bitcoin price recovery can be a bear trap due to headwinds like recession and economic uncertainty ahead. BTC price is currently trading at $56,497 in the last 24 hours. Trading volume saw a 68% increase over the last day.
The post Crypto Stocks, Nvidia Rise Alongside Bitcoin Ahead Of US CPI appeared first on CoinGape.
from CoinGape https://ift.tt/JunX5f7
via IFTTT