Following the powerful employment data announced in the United States, eyes in the crypto currency market are now converted into US Consumer Price Index (CPI) data. Investors foresee that inflation figures can signal the way in the future in the monetary policy of the US Federal Reserve (FED). Recently, there is a decrease in the expectation of interest rate reduction, while new macroeconomic indicators are closely monitored.
Market Effects of Inflation Data
According to market commentators, US CPI data is the power to affect short -term price fluctuations, especially in crypto assets and other risky investments. The strong US employment figures announced last week reduced the likelihood of the FED to make a reduction in policy interest in 2024. Now the eyes have been translated into how the signals from the new inflation data to be announced in the United States will shape the shape of the current monetary policy.
Economists evaluate the possibility that the FED may continue to keep the interest rates higher if inflation occurs above expectations. On the contrary, it is stated that the possibility of interest rate reduction may come to the fore again if the expected or lower levels are observed in CPI. Such data descriptions in the crypto market can create rapid changes in liquidity and investment appetite.
Expectations about Fed’s interest decisions
The US Federal Bank continues to monitor a wide data set and economic indicators in its decisions. In the last period, it was emphasized that inflation would be exhibited a cautious approach until it approached the targeted levels. Market analysts predict that the FED will take into account the entire workforce market, growth and inflation indicators in the future steps of the FED.
Finance analyst Richard Parker used the following statements on the subject:
“CPI data, which will be announced in the USA, can reshape investors’ expectations of interest rate cuts. Data will play a decisive role for monetary policy.”
The observers emphasize that they carefully follow the Fed’s statements that direct the markets. The increase in consumer prices in the USA can have a similar effect on both traditional and digital financial markets. Following the announcement of economic data, short -term mobility can be experienced in crypto prices.
Expectations and uncertainties in the crypto market
Experts point out that there is a need for clear signals on the general appearance of the US economy rather than interest rate cuts in the crypto money market. Inflation data has the potential to shape the expectations of the market, although not directly. Investors continue to follow the developments closely.
Analysts also state that the US Federal Bank’s data -based approach increases uncertainty in the markets. While each new macroeconomic indicator affects investment decisions, Fed’s explanations can increase the volatility in the markets.
Throughout the market, there is a tendency to turn to alternative investment instruments after weakening the hope of interest rate reduction. Especially in the crypto currency market, volatility is expected to continue. The result of CPI data is seen as a decisive direction in the markets in the second half of the year.
Inflation data from the United States is estimated to have the potential to increase both investors’ risk perception and volatility in crypto money markets. The stance of the Fed against these data may be effective in the coming of global financial markets in the coming period. Investors are warned to be careful against volatility and follow developments instantly.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
