A very rough week in crypto markets appears on track to conclude on a slightly positive tone.
About an hour ahead of the close of U.S. stock market trade Friday, the price of bitcoin has managed to climb back above $103,000 — up about 2% over the past 24 hours — after falling back to the $99,000 area earlier in the session.
It’s some solace for the bulls after bitcoin plunged from above $110,000 at one point Sunday to below $99,000 about 48 hours later.
The bounces in some altcoins were even larger on Friday, with ether , and solana ahead 4%-5%, and and , up 12% and 9%, respectively.
For now, the moves higher have all the markings of a modest short-covering rally following dramatic plunges across the sector for most of the week.
Looking closely, though, the bulls will find some green shoots in the latest economic data. Normally, not a massively-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 bit more import.
Down to 50.3 in November from 53.6 a month earlier, the gauge slumped to levels seen during the Covid panic, the Global Financial Crisis, and the 1990 and 1981 recessions.
At the same time, inflation expectations over the coming 5-10 year period eased a bit but remained perky 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 suggest the U.S. Federal Reserve — which sent markets tumbling with its surprise hawkish tilt last week — might have to re-consider what appeared to be growing momentum within the central bank not to cut rates again at its final meeting of the year in December.
Congress also reads the papers and the sharp unexpected slump in consumer sentiment will surely not go un-noticed on Capital Hill, possibly pushing officials on both sides of the aisle towards a deal to re-open the government.
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