Gate.ioBlogThe US CPI Fired A Big Market While The Crypto Storm Keeps Intensifying! What Should Investors Do?
The US CPI Fired A Big Market While The Crypto Storm Keeps Intensifying! What Should Investors Do?
17 November 09:00
The US consumer price index (CPI) for October was released on Thursday, with a annual inflation of 7.7%, which is lower than the expected 8.0% earlier. It has eased people's fears that the Federal Reserve will continue to raise interest rates sharply, which is one of the reasons for the surge in US stocks last week. And the positive momentum also seems to have spread to the cryptocurrency market, with data showing that Bitcoin (BTC) fell to $15,600 on the evening of November 9. However, with the release of CPI data, the price of Bitcoin (BTC) soared all the way to $17,800.
1. CPI Inflation Has Cooled Down Significantly Data released by the Labor Department on Thursday showed that CPI inflation grew by only 0.3% in October, significantly lower than the 0.6% in September, which brings a turnaround to the sluggish market environment. The fastest price increase in decades is fading, which means that there is a high probability that the Fed will hold off raIsing the interest rate. After the release of CPI data, the crypto market did usher in a favorable market that had not been seen for a long time. Just when investors are ready to take this opportunity to vigorously profit, they are greatly hit by the recent storm in crypto industry.
2. Lehman Storm Across The Crypto Market
Last week, the cryptocurrency market ushered in a "big storm", that is, FTX, the world's second-largest cryptocurrency exchange, issued a statement to apply for bankruptcy protection, and Sam Bankman-Fried, the founder, announced his resignation as CEO. Prior to this, Binance had announced that it would acquire FTX, and both founders posted that they had reached a preliminary agreement on the acquisition. Subsequently, Binance abruptly published that it was abandoning its acquisition of its peer FTX, which suffers from such a severe funding problem that is beyond Binance's control or ability to help. Trapped in a multibillion-dollar funding gap, FTX had to ask for bankruptcy protection and its CEO resigned.
Following the news that Binance may abandon the acquisition, U.S. Stocks and cryptocurrencies generally fell sharply on Wednesday. According to the statistics of CoinMarketCap, among the top ten cryptocurrencies in the world, except the three stablecoins Tether (USDT), USD Coin (USDC) and Binance USD (BUSD), other cryptocurrencies have fallen by at least 10% in the last 24 hours, among which the Ethereum (ETH), which ranked second only to Bitcoin, the BNB, which ranked fourth, the dog coin (DOGE), which ranked ninth, and the Polygon (MATIC), which ranked tenth, all fell more than 20%. Following Tuesday, the FTX token - FTT has fallen close to 80% again in the last 24 hours.
The founder of Binance warned that the impact of the FTX crash has not yet fully emerged. There will be more companies going bankrupt, and the dilemma facing the crypto market at this moment is similar to the financial crisis of 2008. Recent news shows that the liquidity crisis in crypto industry caused by FTX has not come to an end, which may deteriorate to a upgrade stage of 2.0.
Investors are now trapped in a dilemma and struggle to servive with the gospel brought by the decline in the US CPI on one side andthe turmoil caused by the currency storm on the other side. In the face of an unprecedented turbulent market environment, what course should investors follow? Should them keep hesitating, or gamble, or obediently trapped? None! At this time, it is especially important to huddle together for suivival and grasp the life-saving straw.
If you're alone and hesitant, it's extremely difficult to survive in the turbulent market. What you should do to keep yourself footing is find a high-quality group. As a platform where talents in the cryptocurrency circle gather, Copy Trading is a universal lifebuoy, which brings together many top lead traders to form a very strong investing team. Some are good at technical analysis, some good at absorbing abundant funds, others are well-connected, etc., all of whom are industry elites. 3.Why Should You Choose Copy Trading?
First of all, we need to understand the role of copy trading. Copy trading mainly serves two groups: lead traders and copiers. The copiers copy the lead traders' trading action, and the lead traders receive a profit share of 2%-30% from the copiers. With just one click, they can directly follow the lead trader to automatically trade contracts, without the need to manually open and close positions, which enables them to profit in a breeze.
There are two copy trading modes: auto-copy mode and customized copy mode. When in auto-copy mode, copiers can exactly duplicate the lead traders' trading behaviors so that they can make roughly the same profit as the lead traders did. Copy trading would also save you the time and effort of having to monitor the market. With customized copy mode, users can customize the trading parameters, stop profit and loss at any time. Copy trading is a highly user-friendly trading aid that combines personality and personality.
The current market turmoil is mainly affected by the impact of events, if you are not a professional trader, it is difficult for you to keep monitoring the market for all day long. However, copy trading lead traders will always pay attention to hot events and key moments when the market may change, and immediately take countermeasures to maximize profits and minimize losses. Besides, copy trading is the best trading aid for beginners or investors who do not have time to watch the market and also suited for investors who tend to be emotional in the volatile market. Since lead traders are more experienced and sensitive to market changes, who are the trump cards to help copiers successfully break through in a turbulent market. 4.Fearless of The Crypto Storm! Copy Trading Saves You Out of Danger! Bitcoin and Ether both fell last week, which remained a downward trend over the entire week. With the announcement of CPI, the crypto industry ushered in a sudden storm, and the market fell into chaos. However, in the face of such a difficult environment, copy trading lead traders still successfully broke through and profited at a high speed, who have made many good achievements! And the copiers, led by lead traders, also made considerable profits.
Although the interest rate of CPI is falling, the impact of the crypto storm has not a bit settled, which makes the originally volatile market more elusive. It is highly difficult for ordinary users to judge the market trend, so they need the help of experienced lead traders to survive. Now follow lead traders, and make use of their brains to help you grasp the volatile market and regain your confidence in the market.