🚨 BTC Bullish or Bearish!
Everyone's talking about BTC being bullish or bearish—Square is full of it! Let's take a look at what actually happened today.
U.S. inflation data continues to provide a silver lining for the economy, with consumer prices rising by only 2.9% annually in July, falling short of expectations and signaling a potential pivot by the Federal Reserve.
The latest CPI report shows a slight deceleration from June's 3.0% increase, offering further evidence of easing inflationary pressures.
Month-on-month, the CPI climbed by 0.2%, rebounding from last month's dip, aligning with forecasts.
The core CPI, excluding volatile components like food and energy, edged up 3.2% over the past 12 months—again, lower than anticipated—reinforcing the prospect of monetary easing. On a monthly basis, core prices increased by 0.2%, a modest uptick from June's 0.1%.
This follows the recent producer price index, which also pointed to "cooling inflation", setting the stage for the "Federal Reserve to consider cutting interest rates in September".
> Chair Jerome Powell has signaled that sustained favorable inflation readings will be critical in determining the Fed's next move.
Meanwhile, the labor market is showing signs of strain. July's payroll report revealed slower-than-expected job growth, and the unemployment rate ticked up to 4.3%, raising concerns about the broader economic outlook.
FED CUTS RATES?
If the Fed cuts rates, Bitcoin might attract more investors as traditional savings become less appealing. Retail and institutional investors could see "BTC as a hedge against inflation and currency devaluation", potentially "driving up its demand and price". However, skeptics might remain cautious due to Bitcoin's inherent volatility.
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