#BitcoinBounceBack
Bitcoin and digital currencies show signs of recovery before the release of the US inflation report. The report affects expectations for interest rate hikes or cuts from the Fed, which directly reflects on the performance of high-risk assets like digital currencies. A decrease in inflation may weaken the momentum in the digital currency market, as investors may expect the Fed to lower interest rates later, temporarily reducing the appetite for high-risk assets. On the other hand, an increase in inflation may ignite investors' appetite for hedging, pushing them toward Bitcoin $BTC as an alternative asset against the erosion of purchasing power.
A comparison between Ethereum's price movement in the 2016-2017 cycle and the 2024-2025 cycle, where the similarity suggests that the price is moving in a sideways range followed by a circular bottom, which is a technical pattern hinting at a potential strong rally ahead, similar to what happened previously. This indicates that the current period may be a smart entry opportunity before a new wave of rise $ETH
#MarketRebound
