CPI Comes In The United States By 2.7 %, Climbing The Encryption Market Star-news.press/wp

CPI inflation data in the United States has become better than expected, providing a large boost to the encryption market. This optimism about reducing the federal reserve rate in September, which is usually bullied in the market.

American CPI data is still fixed at 2.7 %

Work statistics office data He explains that inflation data was at 2.7 % on an annual basis (YOY), less than 2.8 % and semi -month expectations. Meanwhile, monthly inflation came 0.2 %, less than the previous reading of 0.3 %.

Moreover, the basic consumer price index increased to 3.1 % on an annual basis, above the expected 3 %. This represents a five -month rise in this inflation scale. However, the data provided a large boost to the encryption market, with the high prices after the data is issued.

Tradingview data shows that the total maximum Crypto market rose from $ 3.9 trillion to $ 3.94 trillion after the release of the consumer price index. This is led by large bitcoin, ethereum, XRP, and Solana prices. It is worth noting that ETH erupted over $ 4400 from the lowest level of the day of $ 4,172.

A copy of the total ceiling of the encryption market — Source: TradingView; The total encryption market

As COININAPE, the encryption market was disrupted before the issuance of CPI data in the United States. However, the report also indicated that encryption prices were preparing for the gathering if the annual number came by 2.8 % or less.

This upward outlook of the market stems from the fact that the federal reserve is now likely to lead to a reduction in the Federal Reserve rate in September, based on the numbers of the consumer price index. This federal reserve may not have a choice but to do this with inflation is still low while weakening the labor market. Cash mitigation policies pump more liquidity into the market and increase morale on risk.

CME Fedwatch data shows that there is now an 82.4 % chance that the Federal Reserve Bank reduces prices by 25 basis points (BPS) at the September meeting. Meanwhile, there is only 17.6 % opportunity to keep fixed rates.

The risk of reducing the federal reserve rate — Source: CME Fedwatch

Some FOMC members have already indicated that they tend to reduce the federal reserve rate in September even before the consumer price index was released. The last of which is Michelle Bowman, who urged her colleagues to vote to reduce the rate. She also said she prefers three price cuts this year.