On Wednesday, the token's value increased by 3. The equity market's reaction to US inflation data on Wednesday set a positive tone for digital tokens, and the correlation between Bitcoin and Nasdaq, a gauge of US technology companies, reached a two-year high. According to Bloomberg data, the OG token and the Nasdaq Index have a day correlation coefficient of about 0. If the value is 1, the assets are moving in lockstep, and if it is -1, the assets are moving in inverse tie.
According to the latest US inflation report, consumer price increases of 2. Cheaper hotel stays, a smaller advance in medical care services, and relatively tame rent increases helped to restrain the December figure.
Easing inflation helps re-establish the discourse that progress in price pressures has restarted after months of higher prints. However, Fed members will still need a string of modest readings to be convinced. Bond yields have surged significantly due to persistent inflation and worries that the Fed eased too hastily late last year. However, several analysts suggest that the news could potentially lead to a Fed rate cut in March. John Williams, president of the Federal Reserve Bank of New York, expressed optimism that inflation will keep falling but provided no clues as to when more cuts would be implemented.
New data suggest ongoing success in reducing inflation, according to his Richmond colleague Tom Barkin, who argued that rates should stay conservative. The Chicago Fed's president, Austan Goolsbee, used the numbers to back up his prediction that pricing pressures will be eased.
Despite a strong US economy and doubts about the effects of Trump's policies, markets were worried about the Fed's ability to cut interest rates further. Bloomberg data shows that the combined cross-asset rise was the highest for an index day of consumer prices since late As risk-takers reemerged, the market's "fear gauge" β the VIX index β marked its biggest decline this year.
