13 Jun

Target Thursday: 3 cryptos met expectations, with one surprise winner

June 13, 2024

By ForexTime

  • Cryptos soared post-CPI, tumbled after Fed
  • Avalanch rose as much as 6.2%, up 5.1% for the day
  • Solana rose as much as 6.3%, up 3.9% for the day
  • Chainlink rose as much as 6.9%, up 5.8% for the day
  • Dogecoin rose as much as 7.5%, up 5.5% for the day

 

It was a wild Wednesday for global financial markets!

Major US stock indices hit fresh record highs, while the US dollar saw its 2nd largest single-day decline so far this year!

Markets swung wildly as investors and traders reacted to the surprise cooling in US inflation, as measured by the consumer price index (CPI).

They also reacted to the Fed’s latest projections for fewer rate cuts this year.

The Fed’s just-released “dot plots” forecasted just one single rate cut for the year, fewer than the 3 previously forecasted back in March 2024.

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However, in percentage terms, Wednesday belonged to cryptos – as expected.

 

We revisit our article published on Tuesday, June 11th, in which we asked the question:

“Which crypto could see the biggest moves this week?“

And here’s what we wrote:

“Of the 11 different cryptocurrencies offered by FXTM, Avalanch, Dogecoin and Solana have offered the biggest reactions to the US CPI prints and Fed decisions from the past 12 months.”

 

And once again, those 3 cryptos duly delivered massive moves on Wednesday, June 12th!

But they were pipped for the day’s total performance by a “dark horse” – Chainlink.

 

Here’s a recap of Wednesday’s full-day performance:

  1. Chainlink rose 5.8%
  2. Dogecoin rose 5.5%
  3. Avalanch rose 5.07%
  4. Solana rose 3.9%
  5. Cardano rose 3.5%
  6. Polygon rose 3.1%
  7. Ethereum rose 1.9%
  8. Ripple rose 1.9%
  9. Litecoin rose 1.7%
  10. Bitcoin Cash rose by 1.3%
  11. Bitcoin rose 1.2%

 

In terms of immediate post-CPI gains, Chainlink also managed to muscle its way into the leading pack:

  • Dogecoin rose as much as 7.5%
  • Chainlink rose as much as 6.9%
  • Solana rose as much as 6.3%
  • Avalanch rose as much as 6.2%

 

Then came along the Fed’s dot plot.

Cryptos then tumbled at the thought of higher-for-longer US interest rates.

Even those downside moves were massive for these 4 cryptos:

  • Solana fell as much as 6.7%
  • Dogecoin fell as much as 5%
  • Avalanch fell as much as 4.6%
  • Chainlink fell as much as 3.8%

 

Hence, with Chainlink’s smaller decline (in % terms), that explains why Chainlink was the biggest-gainer for Wednesday as a whole!

 

Those above-mentioned figures are also far superior compared to yesterday’s performance for Bitcoin – the world’s largest and most popular crypto:

  • Post-CPI: rose as much as 3.09%
  • Post-Fed: fell as much as 3.94%
  • ended Wednesday up just 1.2%

 

All in all, yesterday’s price action demonstrated yet again the volatile nature of cryptocurrencies.

Still, such big price moves may have been happy hunting grounds for traders with massive risk appetites who may have walked away with outsized profits, and perhaps a great trading story to tell as well.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com


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