What impact will Friday’s CPI data release have on the crypto market?
This Friday’s US CPI should be one of the most worth-watching data points for the crypto space this week.
CPI gauges how US inflation is doing. And inflation determines whether the Federal Reserve will cut rates. Whether it cuts or not then determines where market capital flows. If the Fed cuts rates, market liquidity gets released; then funds flow into US stocks and investment markets like cryptocurrencies, which stimulates technology stocks and drives growth in the crypto market.
This CPI release is crucial. Recently, employment data has been relatively strong, and market expectations for a rate cut have already started to wobble.
If the CPI comes in below expectations, the market is likely to breathe easier, and $BTC may have another chance to push higher.
If CPI matches expectations, it will likely still be range-bound, and the market will wait to choose a direction.
If CPI is above expectations, be careful. If the US dollar and US Treasury yields rise, the crypto market is likely to get hit.
So on Friday, don’t rush to bet on the data—wait for the result and then look for the direction.
One sentence: CPI low = bullish; CPI high = bearish; what’s worst is when it comes in beyond expectations.#Zcash周涨45%创2016年来新高
This Friday’s US CPI should be one of the most worth-watching data points for the crypto space this week.
CPI gauges how US inflation is doing. And inflation determines whether the Federal Reserve will cut rates. Whether it cuts or not then determines where market capital flows. If the Fed cuts rates, market liquidity gets released; then funds flow into US stocks and investment markets like cryptocurrencies, which stimulates technology stocks and drives growth in the crypto market.
This CPI release is crucial. Recently, employment data has been relatively strong, and market expectations for a rate cut have already started to wobble.
If the CPI comes in below expectations, the market is likely to breathe easier, and $BTC may have another chance to push higher.
If CPI matches expectations, it will likely still be range-bound, and the market will wait to choose a direction.
If CPI is above expectations, be careful. If the US dollar and US Treasury yields rise, the crypto market is likely to get hit.
So on Friday, don’t rush to bet on the data—wait for the result and then look for the direction.
One sentence: CPI low = bullish; CPI high = bearish; what’s worst is when it comes in beyond expectations.#Zcash周涨45%创2016年来新高
