What Did Williams Reveal About Inflation?

Fed member Williams has notably addressed tariffs directly, marking a shift in focus. Contrary to expectations, recent Producer Price Index (PPI) figures reflect a decline in investor sentiment. Additionally, the Michigan inflation expectation statistic has surged from 5% to 6.7%, signaling growing concerns among economists.

How Will These Changes Impact the Economy?

Williams pointed out that inflation levels are set to rise considerably, with tariffs posing a significant threat to annual economic growth. He stated, “Tariffs will raise inflation this year by 3.5% to 4%. The economy is enveloped in uncertainty, with tariffs and trade playing critical roles in this dynamic.”

Despite the market’s reaction, expectations for interest rate reductions have diminished. Reports indicate that a meeting between the leaders of China and the U.S. is on the horizon. Should they fail to reach an agreement, the resulting uncertainty may lead to a scenario where recession fears overshadow concerns about a depression.

• Williams indicates inflation could rise significantly.
• Current monetary policies provide flexibility for central banks.
• Projected economic growth may slow to 1% this year.
• Unemployment rates might increase to between 4.5% and 5%.

The ramifications of these developments are complex, with experts cautioning against overlooking the interplay of inflation, trade, and interest rates. As the economic landscape continues to evolve, stakeholders must remain vigilant and adaptable to these shifting conditions.

Source: CryptoSlate

Bitcoin ($BTC) is showing technical signals of an imminent bullish reversal since its momentum indicators are diverging from its current price action. The setup indicates decreasing downward momentum with declining prices, a signal typically monitored to track the changes in market cycles.

MACD Divergence Suggests Momentum Shift

As noted in a tweet by Javon Marks, this divergence on the chart of Bitcoin may have the price making a strong move up if supported by any further technical signals. The MACD lines are converging right now, which suggests there could be an impending bullish crossover. Such a crossover would terminate the existing downtrend if confirmed with rising volume and a close above the local high.

The current chart on the BTC/USD depicts a classic divergence condition in which the prices make lower lows but the MACD indicator makes higher lows. Such divergence indicates a weakening in the momentum to the downside, which is usually the precursor to a reversal or a bounce.

Support Indicators Signal Strength Behind

On the weekly graph, Bitcoin is still above an enduring ascending trendline that has experienced consistent buying pressure since late 2022. Every price drop to this trendline has witnessed an upside reaction, maintaining the general bullish setup in place.

Stochastic RSI on the weekly chart is in the zone of overselling. The %D and %K lines are both beneath 20 and are set to cross above it soon. This is usually considered a buying signal. The Relative Strength Index (RSI) is steady at 45.89 and indicates neutral momentum with a tendency to recover.

Source : TradingView

The A/D line is rising, which points to ongoing buying pressure even on the recent corrections. The rising A/D line is evidence to support the argument that larger participants are still on the buy side on declines.

Rebound Level Targets and Market Focus

Bitcoin is trading at $82,542.35 and is up 2.02% in the past 24 hours. If the price breaks above the recent swing high, an upside move to the upper $80,000s becomes technically achievable. Sustained momentum can put Bitcoin in the position to revisit levels above $90,000 based on market affirmation.

Current technical configurations, ranging from the bullish divergence on MACD to oversold Stoch RSI conditions and price stability against trendline support, put BTC into a pivotal technical position.

The post Bitcoin MACD Divergence Could Trigger Bullish Reversal, Says Analyst appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.

Source: CryptoSlate

The milestone serves as a reminder of Bitcoin's sustained relevance and impact on the global financial landscape, provoking diverse reactions from market stakeholders as substantial price fluctuations continue.

Bitcoin's 15-Year Influence on Digital Finance

Bitcoin, the pioneering cryptocurrency, reached its 15-year milestone, marking a profound influence on the digital finance sector. Introduced by Satoshi Nakamoto, it has consistently demonstrated resilience amidst market volatility.

The cryptocurrency community globally celebrated this milestone, emphasizing the enduring innovation Bitcoin represents. This event reinforces digital currency's role in transforming traditional financial systems worldwide.

Investor Sentiment Marks Anniversary Reflections

Investors expressed mixed outlooks on Bitcoin's future, balancing optimism with caution due to its inherent price spikes. The anniversary serves as a focal point for evaluating blockchain technology's influence on investment strategies.

Bitcoin's maturation points towards increased regulatory scrutiny and financial sector integration.

However, historical trends suggest cyclical market adjustments are commonplace, providing seasoned analysts with ample data to gauge Bitcoin's enduring value.

Speculative Milestones and Future Projections

Comparable to past anniversaries, Bitcoin's 15th year highlighted its speculative nature among investors. Its fluctuating valuation cycles mirror familiar patterns, providing both challenges and opportunities to market participants.

Expert commentary from Kanalcoin indicates that Bitcoin's evolution may signal new investment opportunities. Comprehensive analysis of market trends underscores its capacity for adaptation and sustained influence within the digital currency domain.

Source: CryptoSlate

Interest Rate Adjustments Fuel Market Optimism

Valentin Fournier from BRN noted in a Friday report that the recent drop in inflation could increase the chances of a rate cut at the upcoming Fed meeting in May. This potential shift is seen as a critical factor that could influence both traditional markets and the cryptocurrency sector. Following the inflation report, Bitcoin has been trading well, maintaining levels above $80,000 and recently hovering around $82,300.

However, there are signs of weakness in institutional investments, with a notable capital outflow from spot Bitcoin ETFs over the past six days, suggesting that a robust upward trend has not yet been established. Fournier points to ongoing tariff disputes between the U.S. and China as a contributing factor. Nonetheless, some cryptocurrency funds on Wall Street might still see significant capital inflows soon.

Can Macroeconomic Issues Dampen Market Enthusiasm?

Despite the increased optimism surrounding the cryptocurrency market, experts caution that March’s inflation figures may not significantly alter the Fed’s policy decisions. Ongoing tariff negotiations and global trade tensions are exacerbating economic uncertainty, resulting in a more cautious approach from the Fed. U.S. stock markets and government bonds have faced challenges since week’s beginning, compounded by President Trump’s remarks regarding the bond market’s complexities.

The latest data shows that the yield on U.S. 10-year Treasury bonds has exceeded 4.5%, indicating declining investor confidence. Mike Cahill, CEO of Douro Labs, argues that the prevailing low inflation, alongside a weakening bond market and a temporary tariff freeze, suggests structural instability rather than a clear path to recovery. Amberdata Research President Mike Marshall emphasized that turmoil in the traditional financial sector will continue to exert pressure on the cryptocurrency market over time, particularly with escalating tariffs between the U.S. and China.

• Inflation data leads to speculation about rate cuts.
• Bitcoin remains resilient despite capital outflows from ETFs.
• Ongoing trade tensions may hinder sustained market growth.
• High Treasury yields suggest a shift in investor confidence.
• Potential capital may flow from weakened markets to cryptocurrencies.

Shifts in capital dynamics could mean that cryptocurrencies might soon see renewed interest as investors look for stability amidst turmoil in traditional markets. The coming weeks will be critical in determining how these economic indicators influence both investor sentiment and market strategies in the cryptocurrency space.

Source: CryptoSlate

“There will be a kerfuffle in the Treasury markets because of all the rules and regulations,” Dimon said Friday on an earnings call. When that happens, the Fed will step in — but not until “they start to panic a little bit,” he added.

Yields, especially on longer-term debt, have jumped this week amid broader market turmoil tied to President Donald Trump’s evolving tariff policy. The moves have raised questions about the debt’s safe haven appeal and stoked fears that hedge funds may be unwinding a pair of popular leveraged trades — one on the price difference between cash Treasuries and futures, and another on the spread between Treasury yields and swap rates.

In March 2020 with Covid engulfing the world, the Treasury market seized up as investors rapidly unwound their positions. The Fed was forced to intervene, pledging to buy trillions of dollars of bonds and providing emergency funding to the repo markets. Dimon said bank rule changes are needed to avoid that happening again.

“When you have a lot of volatile markets and very wide spreads and low liquidity in Treasuries, it affects all other capital markets,” Dimon said. “That’s the reason to do it, not as a favour to the banks.”

One of the speculated changes that Trump administration regulators may pursue is exempting Treasuries from the US banks’ supplementary leverage ratio, allowing firms to buy up more of the debt without a hit to their key capital ratios.

Dimon said the issue is not just with the SLR, and listed a slew of regulations with “deep flaws” that he said required reforms so banks could become more active intermediaries in markets.

“If they do, spreads will come in, there’ll be more active traders,” he said. “If they don’t, the Fed will have to intermediate, which I think is just a bad policy idea.”

The comments build on ones Dimon made this week in his annual shareholder letter. Certain rules treat Treasuries as “far riskier” than they are, he wrote, adding that restrictions on market-making by primary dealers, together with quantitative tightening, will likely lead to much higher volatility in Treasuries.

“These rules effectively discourage banks from acting as intermediaries in the financial markets — and this would be particularly painful at precisely the wrong time: when markets get volatile,” Dimon wrote.

Source: Theedgemarkets

The euro has emerged as a surprising victor in recent market fluctuations, reaching a three-year high against the US dollar as global investors grow increasingly nervous about holding American assets. This remarkable turnaround comes in the wake of President Donald Trump’s new tariff policies, which have triggered significant market turbulence and caused a substantial shift in global investment flows. The euro’s strength has confounded earlier market consensus, which had predicted the currency would weaken below $1 if tariffs were imposed. Instead, the single currency has gained more than 5% against the dollar since April 1, the day before Trump introduced new 10% baseline tariffs on all economies and additional 20% duties specifically targeting the European Union. The currency’s rally has accelerated following Trump’s decision to pause the higher levies for 90 days, fueling the biggest single-day jump in the euro since 2015.

Euro Emerges as a Winner Amid Traffic Woes

As of 11:13 AM EST on April 11, 2025, the EUR/USD exchange rate stood at 1.1380, representing a daily gain of 1.08%. This follows an even more impressive 2.80% surge on April 10, when the rate closed at 1.1258. The currency pair reached as high as 1.1473 during April 11 trading, marking a substantial rise from its recent low of 1.0732 recorded on March 27, 2025. Over this period, the euro has experienced a remarkable 5.06% jump, with the most dramatic movement occurring between April 9-10 when the euro decisively broke above the psychologically important 1.10 level. This upward momentum builds on gains that started weeks earlier following Germany’s announcement of a massive spending plan, creating a perfect storm of factors supporting the single currency.

Euro’s Turnaround Reflects Significant Shift in Global Capital Flow

The primary driver behind the euro’s unexpected strength is a significant shift in global capital flows. European investors are selling their US assets and bringing money home, with the euro area accounting for the largest share of foreign ownership of US assets by currency. This repatriation pattern is particularly potent given that foreign holdings of US assets had ballooned to $62 trillion in 2024 from just $13 trillion a decade earlier. Unlike traditional safe havens such as the Japanese yen and Swiss franc, the euro typically weakens against the dollar during periods of market stress, making its current performance all the more remarkable. The gap between German and US 10-year bond yields has widened substantially, suggesting growing investor nervousness about US debt. According to ECB policymaker Francois Villeroy de Galhau, Trump’s policies have eroded confidence in the dollar, while some analysts now project the euro could potentially rally to $1.25 if current trends continue.

Euro’s Appreciation Carries Mixed Implications for the European Economy

The euro’s appreciation carries mixed implications for the European economy. On the positive side, increased demand for euro-denominated debt could make it easier for European governments to fund spending initiatives. The stronger euro also provides the European Central Bank with more flexibility to maintain lower interest rates even if tariffs cause inflation to rise. However, analysts warn that becoming a currency of choice could ultimately hurt European exporters who have traditionally benefited from a weaker euro during global economic slowdowns. This concern is particularly relevant as the euro’s strength has been broad-based, hitting a 17-month high versus Britain’s pound and trading around 11-year highs against China’s yuan, pushing it to a record level on a trade-weighted basis. As markets continue to adjust to the new tariff landscape, European policymakers will need to carefully balance these competing economic forces.

The post Euro Surges Against the Dollar Amid Tariff Turbulence appeared first on Tokenist.

Source: CryptoSlate