CPI’s Potential Market Impact
The Consumer Price Index (CPI) is closely watched by the Federal Open Market Committee (FOMC) to inform their decisions. Today, all eyes are on the CPI as investors eagerly await any changes from the previous figures. Last month, the year-over-year CPI was 3.2% with a monthly change of 0.2%. According to expert Michaël van de Poppe, there may be a year-over-year increase to 3.6% with a monthly change of 0.6%. If the numbers exceed expectations, the market could experience turbulence, with higher-risk assets like Bitcoin potentially dropping below $25,000. On the other hand, if the figures align with or fall below predictions, it could lead to a rally in riskier assets, such as Gold and Bitcoin, overshadowing the US Dollar.
The FTX Release: A Billion-Dollar Buzz
Another event capturing attention is the FTX release, which is rumored to involve over $3 billion in assets entering the market. This has caused some unease among investors and led to predictions of a major sell-off, particularly affecting Solana. However, there is a possibility that FTX may not receive approval to release all assets. Even if they do, there are restrictions in place, allowing only $200 million of their assets to be sold each week, likely through private deals. It’s important to note that the market’s reaction may be based on rumors rather than confirmed news. Overall, today promises to be a roller coaster for the crypto market.
Hot Take: A Day of Uncertainty and Potential
Today is a critical day for the crypto industry, with the CPI release and the FTX asset sale poised to shape market movements. The outcome of the CPI figures could impact the performance of higher-risk assets like Bitcoin. If the numbers exceed expectations, we may see a dip in Bitcoin prices. Conversely, if the figures align with or fall below predictions, riskier assets could rally, overshadowing the US Dollar. The FTX release adds another layer of uncertainty, with rumors of a major sell-off but also the possibility of restricted sales. All in all, today’s events bring both opportunities and challenges for crypto investors.
By
By
By
By