Hey, guys,
risk on is back in the market, long term or not, we'll see next week.
But first we need to understand the reasons.
First of all, the US inflation data came out better than expected at 3.0% with a forecast of 3.1%. This brings closer the rate cut in September. Which means cheaper money and as a consequence there was a breakdown in the Russel 2000 stock index, which consists mainly of small capitalization companies that show gains when investors are risk averse and expect to make money on asset growth. Bitcoin and all crypto belongs to the same asset class, so there is a consensus to buy in the cryptocurrency market.
The next event to note, which the market saw as a positive for the crypto market, On Wednesday, Rostin Behnam, head of the U.S. Commodity Futures Trading Commission (CFTC), confirmed that an Illinois court officially recognized the status of BTC and ETH as digital commodities under the Commodity Exchange Act.
It is this event that is now driving XRP's growth.
It should be recalled that at times like this, you should respect your risk profile.
Stay tuned.
