The nonfarm payrolls report is out; next week it’s CPI’s turn. This is the last inflation reading before the Fed’s December rate decision.
Citi expects a mild reading: core CPI rose 0.19% month over month in October, well below September’s 0.33%. But it says even that wouldn’t change the case for a December rate hike—unless financial markets suddenly tighten, for example, if stocks suffer a sharp correction.
That’s an interesting point. The Nasdaq just fell 5.5% the day before yesterday, its steepest drop since 2020. Whether the Fed hikes in December may depend not just on CPI, but also on whether U.S. stocks stay steady from here.
It’s a mixed picture for crypto: the more U.S. stocks fall, the more likely a rate hike will be delayed; but when stocks fall, Bitcoin tends to fall too. Caught on both sides, all we can do is wait for CPI to set the direction.
Big Bro’s take: stay on the sidelines until CPI. Bitcoin needs to get back above 80k to be out of the woods; if it breaks below 75.5k, it could fall further. #CPI前瞻，12月利率走向迎关键考验 $BTC
Citi expects a mild reading: core CPI rose 0.19% month over month in October, well below September’s 0.33%. But it says even that wouldn’t change the case for a December rate hike—unless financial markets suddenly tighten, for example, if stocks suffer a sharp correction.
That’s an interesting point. The Nasdaq just fell 5.5% the day before yesterday, its steepest drop since 2020. Whether the Fed hikes in December may depend not just on CPI, but also on whether U.S. stocks stay steady from here.
It’s a mixed picture for crypto: the more U.S. stocks fall, the more likely a rate hike will be delayed; but when stocks fall, Bitcoin tends to fall too. Caught on both sides, all we can do is wait for CPI to set the direction.
Big Bro’s take: stay on the sidelines until CPI. Bitcoin needs to get back above 80k to be out of the woods; if it breaks below 75.5k, it could fall further. #CPI前瞻，12月利率走向迎关键考验 $BTC
