U.S. core CPI for August rose 0.3% month over month, above the 0.2% consensus, reinforcing expectations that the Federal Reserve could raise rates next week, according to a CoinDesk report cited by PANews. Analysts said markets have likely had enough time to price in another hike, which could limit the immediate reaction if the Fed delivers what investors already expect. In that setup, a surprise decision to leave rates unchanged could produce a larger rally in risk assets.
Matt Mena, senior crypto research strategist at 21Shares, said historical data shows Bitcoin has posted an average gain of 2.13% over the 30 days following upside core CPI surprises. After the latest inflation print, Bitcoin was trading at about $78,600, up 1.5% over the past 24 hours. Mark Connors, chief investment officer at Risk Dimensions, said the broad rise in Treasury yields together with strength in both Bitcoin and gold suggests investors are focused not only on the Fed’s rate path, but also on inflation, government debt, and the credibility of monetary policy.
U.S. core CPI rose 0.3% month over month in August, above the expected 0.2%, reinforcing expectations that the Federal Reserve could raise rates next week, according to CoinDesk.
Analysts said markets have already had ample time to prepare for a rate hike. If the Fed moves as expected, the market reaction may be limited. A surprise decision to keep rates unchanged, by contrast, could trigger a bigger move higher in risk assets.
Matt Mena, senior crypto research strategist at 21Shares, said historical data shows Bitcoin has gained an average of 2.13% in the 30 days after core CPI comes in above expectations. Following the inflation release, Bitcoin was trading at about $78,600, up 1.5% over the past 24 hours.
Mark Connors, chief investment officer at Risk Dimensions, said the rise in Treasury yields across the curve, alongside gains in both Bitcoin and gold, shows markets are worried about more than the Fed’s rate path. He said inflation, government debt, and the credibility of monetary policy are also in focus.
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