The US Consumer Price Index (CPI) has taken an unexpected turn. In May, the unadjusted CPI annual rate was announced as 3.3%, which was below the expectation of 3.4% and decreased compared to the previous value of 3.4%.
The unadjusted core CPI annual rate for the same month also came in at 3.4%, below the expectation of 3.5% and below the previous value of 3.6%. This marks the lowest core CPI annual rate since April 2021.
This unexpected drop in CPI is largely attributed to the drop in gasoline prices. The market currently expects the Federal Reserve to cut interest rates by 25 basis points in November with 100% certainty. However, the possibility of a rate cut in September remains uncertain.
cryptocurrency In the market, analysts of hedge fund QCP Capital shared their opinions. According to analysts, while traders eagerly awaited the release of CPI data and the outcome of the Federal Open Market Committee (FOMC) meeting, they stated that both Bitcoin (BTC) and Ethereum (ETH) spot prices remained within a certain range.
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Analysts expressed optimism heading into these events due to several factors:
- BTC futures swap points rose from the lows of 10% yesterday, indicating that traders are taking profits from their base trades by covering their short positions.
- Today, with the significant increase in the funding rate, aggressive purchases were seen in bonds due on June 13. This shows that the market is positioned for an upward surprise.
- With the stock market reaching record highs for the second consecutive year, analysts believe that a consistent CPI and a neutral result from the FOMC could push the crypto market to new highs once again.
*This is not investment advice.
Source: Bitcoinsistemi.com