CPI with Slight Impact on Crypto

The Consumer Price Index (CPI) data has been shared and the investors expected increasing volatility in the market respectively. Depending on the gap between the estimations and the actual data, the markets were ready to go up or down as it was the major event of the month.

The data is 3.2% YoY though the expectation was 3.1% for March. On the other hand, the matrix that the FED cares more about is the Core CPI which is free from volatile factors such as food and energy and is also 0.1% higher than the estimated percentage.

Both of the data show that there is still a slightly open door between what the FED aims for and the reality itself. However, as we all know that the inflation was two times higher than the current situation and there is no longer a need to be hawkish to settle down the market further by taking the risk of " hard recession " which may ruin the plans for the future monetary policies.

Slight Impact on Crypto

Altcoins are prone to any types of negativity and their reaction to the higher CPI data is a relatively minor loss in value. When it comes to Bitcoin, the investors stress - tested the reaction of Bitcoin to the data.

The swing of Bitcoin was limited to 73K - 71.6K with regard to the surprise in the CPI data. I think it is not even worth mentioning considering the typical volatility of cryptocurrencies.

The almost stable action of crypto indicates that there is a need for more and stronger narratives to perform bigger actions. Of course, we all know what the markets are expecting in June 😉

Interest Rate Cuts: Next Big Thing

The influence of the data has diminished drastically. The markets, both crypto and stocks, no longer shape themselves according to the CPI data from the Euro Zone, China, or the U.S. Obviously, the markets are buying the narrative that the interest rate cuts are inevitable. The local banks in the U.S. are, again, at the risk of bankruptcy and a wave of FUD may hit all markets and the global economy very hard.

It is almost certain that the FED will initiate at least 2 interest rate cuts. Though the inflow to altcoins is still limited, the rate cuts will enable alts to shine as they did in the previous two bull markets.

Now, the market will watch what the FED is cooking for them over the next three months.

CME Data

The story of data is over. The second chapter will be totally based on the interest rate cuts and the quantitative easing period around the world. Unless a black swan hits the markets, all eyes will be on this side.

What do you think about the impacts of CPI data on the crypto market?

Share your thoughts below 👇

Hive On ✌️

Posted Using InLeo Alpha