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Crucial FED Decision Nears! Analysts Offer Last-Minute Insights
The FED’s interest rate decision is imminent following today’s positive inflation data. Here is the most recent analysis from experts.
By:
Mete Demiralp
12.06.2024 – 17:21
Update:
6 seconds ago
0
Unexpectedly, the US Consumer Price Index (CPI) has shifted. In May, the unadjusted CPI annual rate was reported at 3.3%, below the anticipated 3.4% and a decrease from the previous 3.4%.
Similarly, the unadjusted core CPI annual rate for the same month stood at 3.4%, falling short of the expected 3.5% and lower than the previous 3.6%. This marks the lowest core CPI annual rate since April 2021.
The unexpected decline in CPI is largely attributed to the decrease in gasoline prices. Currently, the market anticipates a 25 basis point interest rate cut by the Federal Reserve in November with 100% certainty. However, the likelihood of a rate cut in September remains uncertain.
In the realm of cryptocurrency, analysts from hedge fund QCP Capital have shared their perspectives. They noted that while traders eagerly awaited the release of CPI data and the outcome of the Federal Open Market Committee (FOMC) meeting, both Bitcoin (BTC) and Ethereum (ETH) spot prices remained stable within a specific range.
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Analysts expressed optimism leading up to these events for several reasons:
BTC futures swap points saw an increase from yesterday’s lows of 10%, indicating traders are profiting from their base trades by covering short positions.
Today, there were aggressive purchases in bonds due on June 13, accompanied by a significant rise in the funding rate. This suggests the market is positioned for an upward surprise.
With the stock market achieving record highs for the second consecutive year, analysts believe that a consistent CPI and a neutral outcome from the FOMC could propel the crypto market to new highs once more.
*This is not investment advice.
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