Mixed Signals in the Crypto Landscape

The crypto market braces for an eventful weekend, teetering between optimism and uncertainty after a whirlwind week of mixed signals. CPI data hit the 2.7% mark as expected—neutral, stable, unexciting—but Thursday’s PPI at 0.4% raised eyebrows, doubling the forecast.

Persistent producer price pressures are like termites—they won’t collapse the house overnight, but their presence gnaws away at the foundations of stability. Meanwhile, the European Central Bank decided to add a splash of liquidity with a 0.25% rate cut, a move that’s more band-aid than cure-all for the eurozone’s sluggish growth.

These developments played their part in lifting the U.S. Dollar Index (DXY), which closed strong at 107 on Thursday. A resilient dollar might keep crypto inflows on a tight leash, cooling the risk-on narrative. Sure, a weak dollar boosts crypto optimism, but this isn’t that story—not yet.

Let’s not sugarcoat it—the extreme greed lingered far too long, stretching nearly a month before being smacked down abruptly in Monday and Tuesday’s brutal crashes. But here’s the twist: extreme greed didn’t take long to resurface, climbing back to 80 yesterday. Today’s reading (Friday, December 13) shows this:

Go to Source to See Full Article
Author: Michal D. Ciesla