THE BIGGEST CRYPTO CRASH IS COMING (STAY ALERT) 🔻🔻🔻⛔️⛔️⛔️⛔️
The Producer Price Index for January rose 3.5% year-over-year, exceeding the 3.3% forecast. Core PPI inflation also topped expectations, coming in at 3.6% vs. 3.3%. Crucially, the PPI is now at its hottest level since February 2023.
The disappointing PPI follows a hotter-than-expected CPI report on Wednesday, signaling that the US Federal Reserve is far from achieving its 2% inflation target.
For starters, Truflation, the real-time inflation data platform, estimates the current inflation rate in the US economy at 2.07%—significantly lower than the levels indicated by the CPI and PPI reports, and very close to the Fed’s target.
More importantly, the US Fed depends largely on the core Personal Consumption Expenditure (PCE) to gauge inflation levels. PPI’s components that contribute to the PCE actually cooled down in January in comparison to December.
Furthermore, US President Donald Trump has kicked the can down the road regarding reciprocal tariffs. While Trump remains committed to a trade war with several key partners, he has yet to set a start date, providing short-term relief to the markets and time for potential deals between nations.
Finally, while it’s unlikely that the US Fed will start its quantitative easing any time soon, measures like the Trasure General Account drawdown, RRP intervention, private credit creation, etc. could result in global liquidity surging, paving the way for a parabolic crypto rally.
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