Market Update.
The CPI was good for Crypto, but the Funds rate(which wont be effected by todays readings) and FOMC will decide everything.
Firstly the CPI news is great for Crypto, i did say in my post about "Wednesday being Key" would should see a drop of 0.1% in Y.Y we also saw a drop in M.M.
Note these readings will not effect the rates decision today, they will effect what is said at the FOMC press conference though.(Future outlook)
The Jobs market needs to slow to to lower Interest rates.(why friday hurt the crypto market)
I predict we will see a likely outcome that the Powell states 2 Cuts remain the likely possibility, the first being September(this will be slightly Bullish for Crypto)
Before Fridays Jobs data the Market was predicting 3-2 interest rates cuts, after the Jobs data it went to split between 2 or 1 cut, the data today pushes that to 2 cuts being the most likely scenario.
Things could still get VERY volatile around FOMC, Please dont assume these readings mean we will see a parabolic bull run starting.
Make no mistake the CPI readings are good for Crypto but all we have done so far is recover some losses from the previous days, the rate and what is said at FOMC will decide if we remain Bullish.
PLEASE NOTE!!
DONT enter high leverage or margin now, every answer Powell gives during the press conference and what he says will move the crypto price, possible a LOT and in ANY direction.
Also note while today is the highest impact news by far, we still have very high impact news coming tomorrow about PPI and unemployement, Also we have BOJ Policy on Friday.
Be Smart
Peace
