US CPI Announcement Today Could Trigger the Next Crypto Bull Rally – Here’s How
Vignesh S G11 Sept 20242 min read
All eyes are on the US Core Consumer Price Index (CPI) as it’s set to be released today, and its outcome could be crucial. This data will help determine whether the Federal Reserve will go ahead with its planned rate cut, which could spark a bullish trend in the cryptocurrency sector. Cryptocurrency enthusiasts are watching closely, hoping for a rate cut to boost the market.
The stakes are high, and the crypto world is on the edge of its seat. Here’s what to expect.
US Inflation Expectations for August
Most top institutions have predicted that August’s CPI inflation will be around 2.5% to 2.6%. As per a post published on X by The Kobeissi Letter, among the institutions expecting the headline inflation to be 2.5%, we have Kalshi, TD Securities, UBS, Citigroup, Barclays, and JP Morgan.
Among those expecting 2.6%, we have Goldman Sachs, Wells Fargo, Deutsche Bank, and Morgan Stanley. Interestingly, Bank of America is also aligned with the 2.6% expectation.
In August 2019, the US Core Inflation Rate was about 2.4%, dropping to a low of 1.2% by January 2020. Between February 2021 and March 2022, it surged from 1.3% to around 6.5%, peaking at 6.6% in September 2022. Since then, it has gradually decreased. It was 3.9% at the start of this year and fell to 3.2% by July. Trading Economics forecasts it will remain around 3.2% for August.
Inflation Rate Overview
The broader US Inflation Rate was 1.7% in August 2019 and dropped to 0.1% in May 2020. After a sharp rise, it peaked at 9.1% in June 2022 and has been slowly declining since. It was 3.1% at the beginning of this year and fell to 2.9% by June. Trading Economics predicts it may drop to 2.7% this month. Many institutions expect it could fall to 2.6% or even 2.5%, as mentioned in The Kobeissi Letter.
Will the Federal Reserve Cut Rates?
The big question is whether the Federal Reserve will move forward with its rate cut plan. Insights from a post on X by Wise Advice suggest that if the CPI is below 2.6%, a rate cut is likely. If it’s above this level, the chances of a rate cut decrease.
If the Federal Reserve announces a rate cut, it could mark a new chapter for the cryptocurrency industry. With the right catalyst, such a move could provide the boost the crypto market needs right now.
Also Read: Bitcoin Price Prediction 2025: Could $1 Million Be in Sight?
The stage is set for a potential crypto market explosion. Are you excited?
