A very difficult week in the crypto markets appears poised to end on a slightly positive tone.
About an hour before the American stock market closed on Friday, the price of bitcoin managed to climb back above $103,000 – up about 2% in the last 24 hours – after falling back to the $99,000 area earlier in the session.
That’s some comfort for bulls after bitcoin fell from above $110,000 on Sunday to below $99,000 about 48 hours later.
Rebounds in some altcoins were even bigger on Friday, with ether , and Solana ahead of 4 to 5%, and And up 12% and 9% respectively.
For now, the moves higher have all the hallmarks of a modest short-covering rally after dramatic falls in the sector for most of the week.
However, upon closer inspection, bulls will find some green shoots in the latest economic data. Normally, it’s not a massively followed report, but amid the government shutdown — and lack of official statistics — the University of Michigan’s consumer confidence survey released Friday morning took on a bit more prominence.
Falling to 50.3 in November from 53.6 a month earlier, the indicator fell to levels seen during the Covid panic, the global financial crisis and the recessions of 1990 and 1981.
At the same time, inflation expectations for the 5-10 year period eased slightly, but remained optimistic at 3.6%.
“Consumers perceive pressures on their personal finances from multiple directions,” said Joanne Hsu, director of the survey. “Consumers also expect labor markets to continue to weaken in the future and expect to be personally impacted.”
The news suggests the U.S. Federal Reserve – which sent markets tumbling with its surprise hawkish guidance last week – may need to reconsider what appeared to be growing momentum within the central bank to avoid cutting rates again at its final meeting of the year in December.
Congress is also reading the newspapers, and the unexpected sharp drop in consumer confidence surely won’t go unnoticed on Capital Hill, perhaps pushing officials on both sides toward a deal to reopen the government.
Read more: Fed turns hawkish as this US jobs indicator flashes red
