It is already possible to assume with a high degree of probability that the last quarter of the current year in the financial world and in particular in the crypto world ($BTC , $ETH , $BNB , etc.) will be hot. We will not sin if we say that this has already begun. From 09/17/2024, a real parade of releases of various financial indicators and data begins.
Let's take a closer look at the events, especially this week, that could significantly impact the Cryptocurrency sector as a whole.
1. 17.09.2024
- release of the US Core Retail Sales indicator.
Core retail sales measure the change in the total value of sales at the retail level in the United States, excluding automobiles. It is an important indicator of consumer spending and is also considered an indicator of the growth rate of the U.S. economy.
The indicator has already come out and amounted to 0.1%, that is, 0.1% lower than the predicted 0.2%.
This means that those in charge of the world's number one economy still have some work to do in terms of stimulating the financial sector.
2. 18.09.2024
- UK Consumer Price Index (CPI) release
The Consumer Price Index (CPI) measures changes in the prices of goods and services from the consumer's perspective. It is a key way to measure changes in purchasing patterns and inflation.
Since the Bank of England has kept the key interest rate at 5.25% since August last year and only reduced it to 5% at the last meeting on 01.08.2024, the CPI as a result was 2.2%. This gives the Bank of England freedom of action in terms of further interest rate reduction.
- release of the Consumer Price Index (CPI) in the Eurozone
It is safe to say that the ECB's inflation-fighting policy has yielded positive results. In the course of one year, since last August, Eurozone inflation has dropped significantly from 5.3% to 2.6% in the same month this year. Almost twice as much. Impressive!
So, in our opinion, the inertia of the decline in inflation in the Eurozone will continue and this is another reason for the subsequent reduction of the interest rate. The indicator was 2.2% and compared to the previous release it decreased by 40 b.p.
- Fed Interest Rate Decision
At the moment, the Fed Fund Rate is 5.5% and has not changed since July last year. One of the main goals of the Fed is to ensure a stable and more or less predictable inflation background. Over the past 12 months, inflation in the US has decreased from 3.2% to 2.5% (the downward trend is obvious). But on the other hand, the labor market is not very smooth and the indicators are disappointing. As a result, the Fed is likely to reduce the interest rate by at least 25 b.p. (0.25%) to maintain the drive in the economy.
The above information shows that the world's major Central Banks will maintain their policy of lowering rates in the near future, as a result of which "cheap money" will flow to private consumers, companies and the economy as a whole.
This will provide a tangible incentive for investments in various areas, including cryptocurrencies.
đ„đ„ đ„ So we need to get ready for a significant rise in cryptocurrencies!!!
