A very difficult week in the crypto markets seems poised to end on a slightly positive note.
About an hour before the US stock market closes on Friday, the price of bitcoin It has managed to climb back above $103,000 (up about 2% in the last 24 hours) after falling back to the $99,000 area earlier in the session.
It’s a consolation for bulls after bitcoin fell from more than $110,000 at one point on Sunday to below $99,000 about 48 hours later.
The bounces in some altcoins were even bigger on Friday, with ether , and sunny ahead 4%-5%, and and an increase of 12% and 9%, respectively.
For now, bullish moves have all the signs of a modest short-covering rally following dramatic sector-wide declines for most of the week.
However, if we look closely, the bulls will find some green shoots in the latest economic data. Normally, it’s not a widely followed report, but amid the government shutdown – and lack of official statistics – the University of Michigan Consumer Sentiment Survey released Friday morning took on a little more importance.
Falling to 50.3 in November from 53.6 a month earlier, the indicator fell to levels seen during the Covid panic, the global financial crisis and the recessions of 1990 and 1981.
At the same time, inflation expectations for the next 5-10 year period declined somewhat, but remained optimistic at 3.6%.
“Consumers perceive pressure on their personal finances from multiple directions,” said survey director Joanne Hsu. “Consumers also anticipate that labor markets will continue to weaken in the future and expect to be personally affected.”
The news suggests the U.S. Federal Reserve, which sent markets tumbling with its surprise hawkish tilt last week, may have to reconsider what appeared to be a growing push within the central bank not to cut rates again at its last meeting of the year in December.
Congress also reads the newspapers, and the sharp and unexpected drop in consumer confidence surely won’t go unnoticed on Capital Hill, possibly pushing officials on both sides of the aisle toward a deal to reopen the government.
Read more: Federal Reserve turns hawkish as this US employment indicator flashes red
