$BTC Tonight, the CPI battle is here
71% chance to bet on a rate hike
Will BTC just lie there at 76,500 waiting to die—or waiting to live?
Brothers
Tonight at 20:30
U.S. August CPI data is about to be released
I swear to God I’ve already cleared my position
Just waiting to watch this big show
Because this CPI report is the last inflation print before the Fed’s September 16th FOMC meeting
So where will CPI go next?
The Fed in September will move accordingly
This data is too important
First, look at market expectations right now
Total CPI year-over-year is expected at 3.4%
Month-over-month 0.4%
Core CPI year-over-year 2.4%
Month-over-month 0.2%
Looks okay, right?
But look at yesterday’s PPI data
My face turned green
The main issue is oil prices
The worst part is diesel
Up 24.1% month over month
This isn’t just a price increase
It’s basically robbing people
PPI is a leading indicator for CPI
Upstream costs have already risen like this
I don’t think tonight’s CPI will be any better
Now look at oil prices
WTI crude is already above $103
Brent is up to 109
Over in Iran-Iraq, they’re still throwing missiles at each other
In the Strait of Hormuz, the average number of merchant ships passing per day has fallen from 130 to 10
For the energy components—
Tonight’s CPI has an absolute landmine in it
Also, the Fed’s new chair, Waller
This guy is completely not on the same page as Powell
In the Powell era, the market thought the 2% inflation target had some flexibility
Waller comes in and basically says it outright
2% is a hard target
We must close in on it clearly and precisely
Otherwise, once the job’s not finished, he keeps going
In plain human words:
Don’t expect me to cut rates
If inflation doesn’t hit the target, I’ll keep hiking
Honestly, the market has already
priced rate hikes as normal course of business
So what about BTC?
Right now it’s just stuck around 77,000
Can’t go up, can’t go down
ETH, SOL, XRP are all pinned down
The whole market feels like someone has pressed a hand on its neck
Breathing is hard
Tonight’s CPI has only two possible scripts
First
If core CPI month-over-month prints 0.3%, or overall is clearly above expectations
The probability of a rate hike could jump to 85%+
U.S. Treasury yields could surge to 5%
The dollar strengthens
BTC will most likely get hammered down
If 76,000 can’t be held, then next we look at around 74,200
Second
If core CPI month-over-month is only 0.1% or overall is weaker than expected
Rate-hike expectations cool off
Risk appetite improves
BTC has a chance to rebound
Resistance to watch at 78,200
Break that and you’ll see 79,800
So brothers
Don’t get itchy with your hands tonight
Control your position size
Bring leverage down
Wait for the data to come out and see how the market digests it
Then decide the direction
Set your stop losses and take care of them
Living is stronger than anything
#cpiwatch