As the cryptocurrency market experiences a surge in altcoin values, analysts are closely monitoring the factors that could sustain these gains. The source notes that the focus is on macroeconomic conditions that could either bolster or hinder this upward trend.
Importance of Liquidity Conditions
Market analysts emphasize the importance of stable or improving liquidity conditions alongside positive economic indicators from the US. These elements are deemed essential for maintaining the momentum of recent altcoin gains.
Upcoming PCE Price Index Release
The upcoming release of the PCE price index on February 20 is particularly significant, as it serves as the Federal Reserve's preferred measure of inflation and will inform their interest rate decision set for March 18.
Market Expectations for Federal Funds Rate
Currently, market expectations suggest a 90% probability that the Federal Funds Rate will remain unchanged at 350-375 basis points according to data from CME's FedWatch tool. This stability in interest rates could provide a conducive environment for altcoins to thrive, provided that macroeconomic conditions remain favorable.
Silver prices have recently shown signs of recovery after a significant market downturn, contrasting with the current surge in altcoin values. For more details, see silver prices rebound.
