Supercore CPI Shock Sparks Volatility Fears in Both Wall Street and Crypto

The US Supercore CPI has gone up unexpectedly, which makes it more likely that interest rates will stay high for a long time and makes the crypto markets less assured.

The most recent U.S. Supercore CPI data reveals that inflation in the service sector has suddenly risen, with both month-over-month and year-over-year measures going up. Supercore CPI measures inflation in services, but not housing or energy. This makes it an important number for the Federal Reserve to look at when figuring out what is causing prices to rise.

Because of this surprise rise, the Fed may have to maintain interest rates high for longer or possibly think about raising them again. Higher rates make it more costly to borrow money, slow down spending, and usually hurt risk assets. For crypto markets, high inflation and a restrictive monetary policy can mean short-term price swings and slower price growth as investors move their money into safer, interest-bearing assets.

But if the markets think this increase is just transitory and the Fed tells them to be patient, crypto might do well later in the year when rates are expected to be lower. Inflation trends will have a big effect on both rate expectations and money moving into digital assets in the next several months.

#CPIWatch #BTCReclaims120K #ETHTreasuryStrategy #CryptoIn401k $ETH $BTC $XRP