Investors’ Risk Appetite is high Because They Anticipate a Red Wave And Further Legislative Deadlock in Congress.

Due to the sell-off on the cryptocurrency market, bitcoin prices have fallen to $15,600. In our earlier analysis, we had predicted that they would reach this level.

Bitcoin’s price range between 15200 and 16000 dollars is likely to be a turning point, and we should anticipate growth toward the first intermediate objective of 18500 dollars.

This is the most essential aspect for us. Substantially reducing the price to below $15,200 will trigger a shift in our perspective, which could result in a more precipitous decrease maybe to 12,000- 10,000 level

The Bureau of Labor Statistics will release the most recent inflation statistics later today. The Consumer Price Index (CPI) for the month of October 2022 is expected to be released on Tuesday, November 10, 2022, at 8:30 a.m. Eastern Time. Economists, analysts, and investors will closely monitor the October inflation statistics to evaluate whether or not the recent rate hikes have had any influence on price growth. On November 10, the Federal Reserve of the United States raised interest rates by 75 basis points, bringing the total rate hikes in 2022 to date to 375 basis points.

This is how the United States’ inflation rate changed from May to September. The annualized rate of inflation in the United States increased from 8.6% in May to 9.1% in June, before declining to 8.5% in July, 8.3% in August 2022, and 8.2% in September 2022, its equilibrium level.

The majority of Wall Street participants estimate that the Consumer Price Index (CPI) climbed by 7.9% or 8% yearly in October, which is a decline from the 8.2% annual growth rate predicted for September. The core Consumer Price Index, which excludes the unpredictability of food and energy costs, is expected to climb by 6.6% year over year, the same percentage as in September.

Prior to a report that is expected to show that inflation in the world’s largest economy decreased for the fourth consecutive month, investors remained wary. This report is anticipated to reveal that US stock-index futures rose, whilst European markets opened down.

Investors need more tangible proof that inflation in the United States has passed its peak, which would indicate a reduction in the Federal Reserve’s rate and severity of monetary tightening. Despite the fact that economists believe that year-over-year headline inflation would fall to 7.9% in October, traders continue to remain cautious because the reading has routinely exceeded expectations this year and the results will be known in the hour today

If the number is 7.5% or less, JPMorgan Chase & Co.’s estimate indicates that the S&P 500 may have a gain of more than 5%; while, if the reading is higher than anticipated, the index could experience a fall of 6.5%., so Bitcoin might do another 15% slide if the indices slide further

The results of the midterm elections in the United States indicated that the Republicans were on track to win control of the House, but by narrower margins than expected, while the Senate contest remained. Investors had anticipated a Republican triumph and, as a result, a legislative deadlock that would be favorable to some reduced risk sentiment.

Both the S&P 500 and the Nasdaq 100 experienced losses greater than 2% on Wednesday , but seems all ready to celebrate as they need a firm direction, and as long the opposition wins ,it worthy for a celebration ,as risk sentiment will be reduced to the lowest as The White house will have difficulty as their ruling party will turns into a Lame Duck and will have difficulty to passed through new Laws

On Thursday, discontent was felt throughout Asia and Europe, as they prefer to see a tsunami win for the opposition , but as the morning market started on Thursday, just prior to the release of U.S. inflation statistics at 8:30 a.m., the dollar made a tiny rise, but cryptocurrency prices remained under pressure.

This occurred after the cryptocurrency exchange Binance postponed its efforts to rescue its struggling competitor FTX, and the market calmed down upon hearing that Huobi’s Stephen Sun might come to the rescue. In addition, FTX has a substantial Singaporean investor-shareholder, Temasek., whom might be able to offer options if other options runs out

The value of the U.S. dollar climbed versus its rivals on Wednesday, but it later surrendered a portion of those gains as investors analyzed the results of the United States midterm elections. At the time of writing, the dollar index DXY, which measures the dollar’s value relative to its major rivals, had increased by 0.11% and stood at 110.48.

Thursday morning , all eyes were on the U.S. inflation data, which were set to be announced. These figures may have a substantial impact on the Federal Reserve’s future rate hikes. According to experts surveyed ,the consumer price index is anticipated to grow by 7.7 to 8% year-over-year in October. This is a decline from September’s gain of 8.2%.

With today’s release of the U.S. CPI is that it will be overinterpreted by the markets. Without a doubt, a softer print is possible, but the Federal Reserve has already signaled a shift in the trajectory of its rate hikes while maintaining its hawkish stance “as was mentioned during the most recent meeting of the FOMC in the first week of November, the U.S. economy continues to strengthen.

According to market commentators, a crisis in the realm of cryptocurrencies contributed to a pessimistic outlook on risk and strengthened the dollar , but if the stock exchange celebrate in rejoice for the Winning by the Republican, it will send off a Brief Relief Rally for the both Stock exchange and Cryptocurrency Indices

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