Why did the market drop after the inflation news? Let me explain it simply 👇
October inflation in the U.S. came in at 0.4% month over month, while expectations were 0.3%. Core inflation was 0.3%, versus 0.2% expected.
That means prices are still rising faster than the Fed wants. Fed official Waller said he supports a 25-basis-point rate hike in December.
Why does this affect $BTC ? Because higher interest rates push money toward bonds (the 2-year bond yield reached around 4.73%) instead of high-risk assets like crypto.
Bottom line: macro factors are what’s driving the market right now, not just crypto-specific news.
Not financial advice.
Do you think the Fed will actually raise rates in December?
#BinanceSquare #CPI #Fed #Bitcoin
October inflation in the U.S. came in at 0.4% month over month, while expectations were 0.3%. Core inflation was 0.3%, versus 0.2% expected.
That means prices are still rising faster than the Fed wants. Fed official Waller said he supports a 25-basis-point rate hike in December.
Why does this affect $BTC ? Because higher interest rates push money toward bonds (the 2-year bond yield reached around 4.73%) instead of high-risk assets like crypto.
Bottom line: macro factors are what’s driving the market right now, not just crypto-specific news.
Not financial advice.
Do you think the Fed will actually raise rates in December?
#BinanceSquare #CPI #Fed #Bitcoin
