#CryptoCPIWatch What scenarios are possible for the crypto market?
* Scenario 1: CPI lower than expected. If the May data shows a significant slowdown in inflation, the market may interpret this as a signal that the peak of inflation has passed and the Fed may ease its monetary policy earlier than anticipated. In this case, we could see a positive reaction in the crypto market, with price increases and a revival of investor interest in risk assets.
* Scenario 2: CPI meets expectations. If the CPI data turns out to be close to the forecasted values, the market reaction may be more subdued. It will all depend on whether the market interprets this data as a sign of controlled inflation or as insufficient progress in reducing it. Volatility may be lower, but the overall direction of the market will depend on further signals from the Fed and the macroeconomic situation as a whole.
* Scenario 3: CPI higher than expected. Unexpectedly high inflation figures may trigger a new wave of concerns about prolonged inflationary pressure and the need for further tightening of monetary policy. In this case, the crypto market may face new pressure, $NEIRO
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