Inflation and the Fed

The Fed will announce its interest rate decision and members' 3-year interest rate forecasts today before the US markets close. However, Fed Chairman Powell will evaluate the latest data. Data such as JOLTS, PCE, Unemployment Rate were in favor of cryptocurrency investors. Inflation data also came in favor recently. If Powell focuses on the glass-half-full approach, the recent decline in cryptocurrencies could be a sign for buyers.

US May Inflation Data Details

Considering that the European Central Bank made its first interest rate cut days ago, an overly hawkish stance should not be expected amid data reflecting the weakness in the US economy. The average cut estimate of Fed members for this year was around 75bp, and even in a warm environment, we should see signals that the first cut will be made at least in September. The exciting wait continues.

QCP Capital Crypto Review

The trading company, which makes evaluations for investors by reading the developments especially on the macroeconomic front, shared its new analysis. In the evaluation article shared about half an hour before the inflation data arrived, they wrote the following;

BTC futures swap points bounced from 10% lows and rose yesterday as investors closed short positions and took profits on underlying trades. With any catalyst, we could easily see yield rising to levels above 15%.

Today, we saw aggressive buying in June 13 bonds due with a significant increase in the funding rate, indicating that the market is positioning for an upside surprise.

With the stock market posting record highs for the second consecutive close, we believe the decline in CPI and neutral FOMC results could push the crypto market to test its highs once again.

We are poised for a breakout awaiting a catalyst that will likely emerge post-FOMC tonight.”