US CPI rose 0.4 percent in October, beating the 0.3 percent forecast. This shift moved the odds of a 50 basis point Fed hike in December from zero to 13.6 percent. $BTC reacted by dipping to an intraday low of $72,727 on Binance before stabilizing near $73,670. For traders, this means the macro environment is tightening again just as liquidity seemed to be returning.
My read is that the sudden appearance of 50 bps hike odds shows the market is losing its confidence in a smooth path for inflation.
Are you hedging for a larger rate hike in December or do you think the market is overreacting to a 0.1 percent beat?
#HotCPIDecemberHikePriced
My read is that the sudden appearance of 50 bps hike odds shows the market is losing its confidence in a smooth path for inflation.
Are you hedging for a larger rate hike in December or do you think the market is overreacting to a 0.1 percent beat?
#HotCPIDecemberHikePriced