Stocks waver as traders fixate over inflation, bitcoin stuck around 30k

US stocks are wavering as surging oil prices and widespread inflation have many traders worried that the Fed may maintain its current tightening pace beyond the summer and that could trigger a much sooner economic growth deterioration. The US economy is not going to have an imminent economic slowdown, but fears are growing that if inflation doesn’t peak until the fall, Wall Street may have underpriced how much tightening the Fed will have to do. ​

Stocks will remain choppy until Friday’s inflation report, but if oil prices continue to surge, that could be reason enough for investors to brace for pricing pressures to remain elevated. ​ ​ ​ ​

Bitcoin stuck around 30k

Bitcoin maintains its high correlation with equities. ​ The focus on inflation continues to drive the incremental moves for Bitcoin, but it still remains stuck around the USD 30,000 level. ​ Cryptos are expected to see clarity with regulation that should provide guidance on taxes over small transactions and how tokens will be regulated. ​

Bitcoin still could form one last major low and that is preventing a lot of money from buying around the USD 30,000 area. ​ Macro conditions won’t improve anytime soon, so bitcoin might have an extended choppy trading period. ​

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.