Ethereum

Reserve Dollar

Core

Spot

Reserve

The crypto market watchers eagerly await the U.S. <a href="https://coingape.com/glossary/consumer-price-index-cpi/" target="_blank" rel="noopener">Consumer Price Index (CPI)</a> data, which is expected to be released by the Labor Department on Thursday, July 11. Notably, the broader financial market will keep a close track of the crucial inflation metric, as it is expected to play a vital role in the Fed’s future move with their policy rate plans. 
Here we explore the Wall Street estimates and the U.S. CPI data’s potential impact on the Fed’s rate-cut decision. 
<h2 id="wall-street-bets-on-cooling-us-cpi-data">Wall Street Bets On Cooling US CPI Data</h2> 
According to market estimates, Thursday’s inflation data is expected to give some relief to the financial market participants, let alone the crypto market. Notably, the U.S. CPI figure is expected to show that the inflation has cooled to 3.1% in June, following a surge of 3.3% in the prior month. 
On a month-over-month (MoM) basis, the <a href="https://coingape.com/us-cpi-inflation-fed-chair-testimony-shape-bitcoin-altcoins-trading-this-week/" target="_blank" rel="noopener">CPI inflation</a> is expected to witness a slight advancement of 0.1%, after remaining unchanged in May. Talking about the Core CPI inflation, Wall Street is betting the MoM increase to remain unchanged at 2.2%. Besides, the YoY change in the U.S. Core CPI is also anticipated to remain stable at 3.4% in June. 
Given the estimates of cooling inflation, the market is betting on a dovish stance by the Federal Reserve. In addition, the recent <a href="https://coingape.com/nonfarm-payroll-unemployment-data-slows-bitcoin-recovery-ahead/" target="_blank" rel="noopener">U.S. Jobs data</a> seems to have bolstered market sentiment over a potential rate cut by the Federal Reserve in September. 
Meanwhile, according to CME FedWatchTool, the market is anticipating a potential rate cut by the U.S. Federal Reserve in September by 25 bps points. Besides, another key inflation data this week, U.S. PPI data, will be released by the Labor Dept. following the U.S. CPI figures. Notably, investors will closely watch both these <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener">inflation</a> indicators for potential cues on future market movements. 
Also Read: <a href="https://coingape.com/coinbase-adds-stader-sd-to-listing-roadmap-token-surges/" target="_blank" rel="noopener">Coinbase Announces New Token Listing, Price Surges 100%</a> 
<h2 id="how-the-crypto-market-is-likely-to-perform">How The Crypto Market Is Likely To Perform?</h2> 
The Fed considers the U.S. CPI inflation data as a crucial metric to gauge the inflationary pressure in the nation. Having said that, the inflation data will be closely watched by investors for potential cues on the Fed’s upcoming move with their policy rate plans. 
Although the market is betting on a potential rate cut in September, a hotter-than-anticipated U.S. CPI can dampen the overall market sentiment. Considering that, the investors should exercise due diligence before putting their bets into the market. 
In addition, the market has gone through a heightened volatile phase lately, as evidenced by the performances of Bitcoin prices and altcoins. For context, the recent Bitcoin selloff by the <a href="https://coingape.com/just-in-bitcoin-drops-as-german-government-transfers-4900-btc/" target="_blank" rel="noopener">German govt</a> and Mt. Gox repayment woes have weighed on the market sentiment. 
However, the recent market sentiment appears to have recovered, with the robust <a href="https://coingape.com/blackrock-ibit-scoops-another-2134-btc-bitcoin-etf-inflows-continue/" target="_blank" rel="noopener">U.S. Spot Bitcoin ETF</a> inflows, and anticipation over potential approval for the <a href="https://coingape.com/bitwise-executive-says-ethereum-etf-is-close-to-the-finish-line/" target="_blank" rel="noopener">Spot Ethereum ETF</a> soon. In addition, the recent filings for <a href="https://coingape.com/sol-price-jumps-6-as-cboe-files-19b-4-for-spot-solana-etf-from-21shares-and-vaneck/" target="_blank" rel="noopener">Solana ETF</a> in the U.S. also hint towards a Bitcoin and altcoins rally soon. 
Also Read: <a href="https://coingape.com/whale-withdraws-16449-eth-ahead-of-ethereum-etf-approval/" target="_blank" rel="noopener">Whale Withdraws 16,449 ETH Ahead of Ethereum ETF Approval</a> 
The post <a href="https://coingape.com/us-cpi-expected-at-3-1-will-fed-start-lowering-interest-rates-soon/">US CPI Anticipated At 3.1%; Will Fed Start Cutting Interest Rates Soon?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

US CPI Anticipated At 3.1%; Will Fed Start Cutting Interest Rates Soon?

قائمة المحتويات

Coingape News Media

المزيد من المقالات نُشرت في ١٠ يوليو ٢٠٢٤

XRP News: XRP Analyst Predicts 710X Surge to $305 Amid Bullish Candlestick Patterns

Bitcoin Rebounds to $58K After Midweek Slump: Is the Worst Over?

Politician Pepe Investor Makes Over 300% Profit, But Waits For 18,000% Surge Amid Volatility

PawFury Challenges Shiba Inu and Floki Inu with Real-World Impact

Early July Bulls Waver: Bitcoin Drops Below $60k, Altcoins Face Negative Funding

Italy to Unveil Crypto Guidelines under EU MiCA Law

انضم إلى مجلتنا الإخبارية المجانية لآخر تحديثات مجال العملات المشفرة يوميًا.