On cautious trading, the dollar settled on Wednesday ahead of the US inflation data later this week, which could affect the Federal Reserve’s policy. Meanwhile, Bitcoin fluctuated after a fake post on social media caused market turmoil.
The US Securities and Exchange Commission stated that someone briefly gained access to its X account on social media and posted a fake message claiming that it had approved bitcoin exchange-traded funds. The Securities and Exchange Commission clarified that it has not yet approved such funds.
The Bitcoin reached a new peak in 21 months at $47,897 after the fake publication, before dropping to less than $45,000 within minutes after the Securities and Exchange Commission deleted the information and denied its accuracy, according to “Reuters.”
The world’s largest cryptocurrency dropped by 0.37% in its latest transactions to $45,953.
Expectations for a positive decision from the Securities and Exchanges Commission regarding exchange-traded funds, which is likely to attract billions of dollars in new investments, have supported Bitcoin prices in the past two months.
In the currency market, the dollar maintained its gains as the dollar index, which measures the performance of the US currency against a basket of six currencies, reached 102.53 after rising by 0.215% on Tuesday.
So far, the index has risen by 1% this month, after decreasing by 1% in December, as traders reassess the possibilities related to the size and timing of the US interest rate cut.
The sudden cautious change in the Federal Reserve’s decision in December, when they forecasted a 75 basis point interest rate cut by 2024, led to an increase in market expectations of monetary easing with traders’ expectations last month of cuts up to 160 basis points.
The operators are focusing on the release of the US Consumer Price Index report tomorrow, Thursday, in order to help predict the likelihood of a decrease in interest rates in March. It is expected that the report will show a monthly inflation rate increase of 0.2% and a yearly increase of 3.2%.
In terms of other currencies, the Euro did not show significant changes at 1.093 dollars, while the Sterling declined by 0.05% to 1.2699 dollars. The Japanese Yen lost 0.17% to reach 144.70 dollars.
The Australian dollar rose by 0.22% to 0.6703 against the dollar, while the New Zealand dollar also increased by 0.09% to 0.6242 against the dollar.
