US Department of LaborConsumer Price Index (CPI) data for January will announce today at 16.30. Expectations are that the data increased by 0.3 percent on a monthly basis and below 0.4 percent in December. Core inflation will rise from 0.2 percent to 0.3 percent, but it is expected to decrease to 3.1 percent on an annual basis. The fact that the data is generally below expectations Bitcoin (BTC) $98,174.7 And altcoinIt is expected to increase demand for risky assets such as s. However, experts emphasize that in such a scenario, strong price increases are not expected.
US inflation data and Fed Interest Discounts
If Inflation Data If it remains below expectations, it may be possible to reduce the Fed’s interest rates early. Interest cuts usually lead to a decrease in bond returns and weakening of the US dollar. This may increase interest in risky assets such as Bitcoin.
However, economists warn Fed’s stance on inflation that it may not change despite this month’s data. RBC‘s weekly report of the FED recorded in inflation is not strong enough to direct the additional interest rate cuts said. Similarly Blackrockthe ongoing price prints in the service sector can force the Fed to keep the interest rate for a longer period of time.
Expectations in which inflation will rise are increasing
Markets inflation Two -year inflation swaps showing their expectations have increased to 2.8 percent since the beginning of 2023. This indicates that investors will increase inflation in the future and take measures to protect.
If January CPI data is explained above expectations, the price of Bitcoin may move to the lower limit of the existing $ 90 -thousand – 110 thousand dollars. In addition, FED President Jerome Powell stressed that they are not hasty in reducing interest. Crypto Money MarketIt can create a more cautious atmosphere.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and perform their operations in line with their own research.
