๐ง๐ผ๐บ๐ผ๐ฟ๐ฟ๐ผ๐ ๐๐ฃ๐ ๐๐ฎ๐๐ฎ ๐ช๐ถ๐น๐น ๐๐ฒ ๐ง๐ต๐ฒ ๐ ๐ผ๐๐ ๐๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐ ๐ข๐ป๐ฒ ๐ข๐ณ ๐ฎ๐ฌ๐ฎ๐ฐ ๐จ
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Read this till the end to know how it'll impact your crypto portfolio.ย
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Tomorrow, the US CPI data will be released at 8:30 a.m. ET
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The expectation of CPI data is 3.4% ( Previous: 3.5%).
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๐ฐ Why Is This Important?
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Recently, the US economy has been in danger of falling into stagflation.ย
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Along with that, the FED officials have also said that they're planning to keep the higher rates for longer as they fear the rise of inflation.ย
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Last month's inflation data was the primary reason that the market is currently expecting no rate cuts in June.
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๐ฐ Now let's look at the 3 scenarios:
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1) Inflation higher than expectedย
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- In this case, the probability of rate cuts will further decrease.ย
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- This will also trigger a market crash, as the market is currently expecting some relief from the FED, which will not happen if inflation rises.
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2) Inflation lower than expectedย
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- This will produce some big green candles.ย
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- The probability of rate cuts will also go up significantly, and the market will price in those rate cuts by pumpingย
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- This will be something every crypto holder is expecting.ย
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3) Inflation data will be the same as expectedย
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- In this scenario, I still expect the market to pump.
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- The reason is that when everyone is fearing rising inflation, stagnant inflation is also a bullish outcome.ย
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๐ฐ Conclusionย
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CPI data always has a significant impact on the crypto market, but this time it could be much bigger.ย
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I would suggest everyone not engage in high-leverage trading during these times, as the volatility could be very high.ย
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