Best Crypto to Buy Now May 10 – Toncoin, Render
With crypto having pulled back sharply in recent trade following US economic data that has reignited fears about stagflation, and in wake of hawkish commentary from Fed policymakers, traders are looking for altcoins with strong bullish momentum that might be the best crypto to buy now.
And strong performing altcoins are difficult to find in Friday’s bearish market.
Bitcoin (BTC) dipped back to the low $61,000s on Friday from earlier highs near $64,000.
The latest US economic data saw US consumer sentiment slump to six months lows while inflation expectations spiked.
Per Bloomberg, “US Consumer Sentiment Slumps as Inflation Expectations Rise” (details below).
Add that to other indicators of the slight stagflationary wind blowing through the economy.#economy #growth #inflation #econtwitter pic.twitter.com/BjvuGjeFlp
— Mohamed A. El-Erian (@elerianm) May 10, 2024
Later, Fed policymakers pondered whether financial conditions in the US are tight enough to deal with stubbornly high inflation.
Fed's Logan Remarks:
"It's TOO EARLY to consider cutting rates."
"Q1 inflation data is DISAPPOINTING."
"There are UNCERTAINTIES regarding whether policy is sufficiently restrictive."
"It is NOT a soft landing yet."
"There are important upside RISKS to inflation."
"The…
— Wall St Engine (@wallstengine) May 10, 2024
As per CME, the money market implied likelihood of no Fed rate cuts by September jumped to 39% from 31%.
Bitcoin and crypto generally tends to perform better in an environment of easing/easier financial conditions.
It thus unsurprising that hawkish remarks from Fed officials, and data to back up a more hawkish Fed stance have weighed on crypto on Friday.
There remains a lot of uncertainty regarding when the Fed will start interest rate cuts.
This,
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