The crypto market is going up today, with Dash and Story jumping by over 30% in the last 24 hours.
Other top gainers were coins like Pepe (PEPE), Optimism (OP), Internet Computer (ICP), and Pudgy Penguins (PENGU).
The crypto market is going up after the recent US jobs and inflation data
One reason why the crypto market is going up today is that the US has published mixed macro numbers recently.
A report released on Friday showed that the economy created just 50,000 jobs, while the unemployment rate improved to 4.4%
Another one released on Tuesday revealed that the core consumer inflation softened in December. It moved from 2.7% in November to 2.6% in December, a trend that may continue this year.
Donald Trump has made affordability a major issue this year as the US moves to the mid-term elections.
He has announced a cap on credit card interest rates, barred institutional investors from buying homes, and asked Fannie Mae to start buying mortgage securities worth over $200 billion.
Trump is also urging American oil companies to boost production, a move he hopes will lead to lower gas prices.
Therefore, a combination of soft labour market data and lower inflation will push the Fed to start cutting interest rates.
CLARITY Act markup and vote
The crypto market is going up as investors reflect on the improving regulatory environment in the United States. The Senate has now published the text for the CLARITY Act ahead of the markup event on Thursday.
There are chances that the Senate will ultimately pass the bill, making it the second major legislation after the GENIUS Act. These bills are aimed at making the United States the crypto capital of the world.
The SEC is already working on this goal. For example, it has ended various lawsuits that were filed by Gary Gensler’s team. It has also launched a crypto exemption week and approved numerous cryptocurrency ETFs.
SCOTUS ruling on Donald Trump’s tariffs
The crypto market is going up as investors wait for the upcoming ruling on Donald Trump’s tariffs.
This ruling is widely expected to happen later today, with a Kalshi poll showing that the odds that they will vote in favour of these tariffs are at 33.8%.
These odds have dropped from over 56% in September last year.
A decision to end Trump’s tariffs would be a good thing for the crypto market. In theory, it would lead to lower prices as companies boost imports to the country.
However, it is worth noting that Trump has some other options to implement the tariffs. Most of these options will only be implemented after a lengthy investigation.
Crypto Fear and Greed Index has jumped
Meanwhile, data shows that the Crypto Fear and Greed Index has rebounded. It has moved from the extreme fear level of 10 in December to the neutral point at 52.
Historically, crypto prices do well when the index is in a slow uptrend. They then drop sharply whenever the index moves to the extreme greed zone.
More data show why the crypto rally is happening.
For example, the futures open interest has soared to $146 billion, the highest level in months, while short liquidations soared by 218%
The post Here’s why the crypto market is going up today appeared first on Invezz