It can already be assumed with a high degree of probability that the last quarter of the current year in the financial world, particularly in the crypto world ($BTC , $ETH , $BNB , etc.) will be quite hot. We won't be wrong to say that it has already begun. Starting from September 17, 2024, a real parade of releases of various financial indicators and data will begin.
Let's analyze the events in more detail, especially those of the current week, that could significantly affect the cryptocurrency sector as a whole.
1. September 17, 2024
- release of the Core Retail Sales figure in the US.
Core Retail Sales measure the change in total sales value at the retail level in the US, excluding automobiles. This is an important indicator of consumer spending and is considered a gauge of the economic growth rate in the US.
The figure has already been released and amounted to 0.1%, which is 0.1% lower than the forecasted 0.2%.
This means that the responsible parties #1 in the world's economy still have work to do regarding stimulating the financial sector.
2. September 18, 2024
- release of the Consumer Price Index (CPI) in the United Kingdom
The Consumer Price Index (CPI) measures the change in prices for goods and services from the perspective of the consumer. It is a key method of measuring changes in purchasing trends and inflation.
Since the Bank of England has maintained its key interest rate at 5.25% since August of last year and only reduced it at the last meeting on August 1, 2024, to 5%, resulting in a CPI of 2.2%. This gives the Bank of England room for further interest rate cuts.
- release of the Consumer Price Index (CPI) in the Eurozone
It can be confidently said that the ECB's (European Central Bank) policy to combat inflation has yielded positive results. Over the past year, since last August, inflation in the Eurozone has significantly decreased from 5.3% to 2.6% in the same month of this year. Almost halved. Impressive!
Therefore, in our assessment, the momentum of declining inflation in the Eurozone will continue, and this is another reason for a subsequent reduction in the interest rate. The figure was 2.2%, down 40 b.p. from the previous release.
- Fed Interest Rate Decision
At the moment, the Fed Fund Rate is 5.5% and has not changed since July of last year. One of the main goals of the Fed is to ensure a stable and relatively predictable inflation environment. Over the past 12 months, inflation in the US has decreased from 3.2% to 2.5% (the downward trend is evident). However, on the other hand, the labor market is not very smooth, and the indicators are disappointing. As a result, the Fed is likely to cut the interest rate by at least 25 b.p. (0.25%) to maintain momentum in the economy.
The above information shows that the major central banks of the world will maintain a policy of rate cuts in the near future. As a result, 'cheap money' will flow to private consumers, companies, and the economy as a whole.
This will provide a significant boost to investments in various directions, including cryptocurrencies.
🔥🔥 🔥 So be prepared for a significant surge in cryptocurrencies!!!
