Market update

The CPI was good for cryptocurrencies, but the funds rate (which will not be affected by today's readings) and the FOMC will decide everything.

First of all, the CPI news is great for cryptocurrencies. In my post I said that "Wednesday is key" and you should see a 0.1% drop in Y.Y. We also saw a drop in M.M.

Note that these readings will not affect today's rate decision, although they will affect what is said at the FOMC press conference (forward outlook).

The labor market needs to slow down to lower interest rates (why Friday hurt the cryptocurrency market)

I predict we will see a likely outcome where Powell states that 2 cuts remain the likely possibility, the first in September (this will be slightly bullish for cryptocurrencies).

Before Friday's jobs data, the market was predicting between 3 and 2 interest rate cuts, after the jobs data it was divided between 2 or 1 cut, today's data takes it to 2 cuts as the most likely scenario. likely.

Things could still get very volatile around the FOMC. Don't assume these readings mean we will see the beginning of a parabolic bull run.

Make no mistake, these readings are very bullish for cryptocurrencies, but all we have done so far is recoup some losses from the previous days, the rate and what is said at the FOMC will decide if we remain bullish and push and hold for above the market capitalization of $ 2.6 billion. barrier.

Don't enter high leverage or margin now, every answer Powell gives during the press conference and what he says will move the price of cryptocurrencies, possibly A LOT and in ANY direction.

be smart

Peace