Quick update.

CPI data came in as expected, down 0.1% y/y.

This has led to a "sell the news" event across markets.

Cryptocurrencies and most indices are down from this reading.

I didn't anticipate the "neutral" reading that would give this reaction when I posted about this yesterday.

This reaction surprised me.

I can only assume this is because large holders have priced in and hedged against lower CPI readings, also because the market is trying to price in a soft landing or recession.

I think this selling pressure will stop soon as it does not have a big impact on the September rate cut, the possibility of a 25bp cut (not 50bp) has increased slightly.

Personally I think many large funds/banks are still in crisis mode after last week's market crash, I think many funds have been over leveraged on carry trades and the full impact of this will be felt in the coming months.

I think the fallout from the carry trade and recession fears will make all indices more volatile in the coming weeks.

Market reaction to this CPI data has been mixed, today's expected/slightly better CPI data has led to a sell off in Cryptos and Indices but the DXY (dollar strength) is also falling, if it was just interest rates related then the DXY would have rallied after this data.

Certainly this is a broader economic concern and I have no doubt that what happened last week (the carry trade) will continue to impact the markets in the coming weeks.

This economic instability is not good for “risk-on” sentiment and therefore cryptocurrency prices.

Tomorrow's "recession risk" indicators will now carry even more weight.

Tomorrow will be different.

Safe transaction.

Peaceful.

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 #BTC☀