Optimism spikes as the markets await inflation data.
Santiment Feed, in a tweet on Monday, reveals that social media users are very optimistic about Bitcoin going into the week; according to Santiment, it is the highest level since the first dip after the asset formed an all-time high in November.
“Bitcoin’s social sentiment is seeing an unprecedented level of optimism this week as we head into the second half of July and the Fed’s next decision. An ideal setup would be the crowd remaining skeptical as prices climb with little resistance,” Santiment tweeted.
📊 #Bitcoin‘s social sentiment is seeing an unprecedented level of optimism this week as we head into the second half of July and the #Fed‘s next decision. An ideal setup would be the crowd remaining skeptical as prices climb with little resistance. https://t.co/OM52RZ9eDP pic.twitter.com/3EtAVYE8hs
— Santiment (@santimentfeed) July 11, 2022
Notably, following such optimism in November, the digital asset started a massive correction spanning over eight months.
It is worth noting that the US Labor Department is set to release inflation data for June this week. Notably, pundits expect a 1.1% month-on-month increase in the Consumer Price Index (CPI), with an annual rate increase from 8.6% to 8.8%, far from the 2% target set by the Fed.
Consequently, pundits believe we will see the Fed raising rates again in the next FOMC meeting. It is worth noting that last month, the Fed decided to raise rates by 75 basis points, the highest rate hike since November 1994. Notably, the rate hike fueled recession speculations.
However, Fed Chair Jerome Powell had tried to ease such concerns by noting that he doesn’t expect the Fed to raise rates often by that magnitude in the future. Consequently, Powell’s statements temporarily boosted the crypto and stock markets despite the significant rate hikes.
It is worth noting that since the Fed adopted a hawkish stance in November, significant capital has left perceived risky assets, including the crypto markets. As a result, about $2 trillion has been wiped off the entire crypto market cap since.
At the time of writing, Bitcoin is down 3.33% in the last 24 hours and up 7.32% compared to the previous seven days. The leading digital asset is exchanging hands for $20,523 on mainstream exchanges. Galaxy Digital’s chief Mike Novogratz expects a massive crypto rally when the Fed starts easing its hawkish stance.
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