Inflation Data Today—How Will Crypto React?

All eyes are on the upcoming Consumer Price Index (CPI) report this Wednesday, arriving just before the Fed's next big move. With interest rate cuts on the horizon, this data could be the key to shaping the Fed's decisions and shaking up the market. Here's why it matters:

If inflation comes in lower than expected, the Fed might slash rates faster or deeper than planned. On the flip side, if inflation is stubbornly high, the Fed could take a more cautious, drawn-out approach.

Key Points to Watch:

Consumer prices are forecasted to rise by 0.2% from July.

Core CPI (excluding food and energy) is also expected to tick up by 0.2%.

Year-over-year, CPI is projected to dip to 2.6%, while core CPI holds steady at 3.2%.

My Take and Crypto's Next Move

Markets are pricing in a 25bps rate cut for September. No major surprises are expected, and if the CPI data aligns with forecasts, the Fed will likely stay on the 25bps track.

But here's the twist: with this already factored into current market prices, I anticipate crypto may actually dip short-term following this outcome. In other words, "buy the rumor, sell the news."

However, if CPI overshoots and comes in significantly higher, we could see increased optimism for a more aggressive 50bps rate cut, which might give crypto a boost.

Stay sharp—it's all about how the numbers play out!

#CryptoMoves #CPIImpact #Bitcoin #FedWatch