Inflation data is playing tricks, as soon as core CPI is exposed, the crypto market takes off overnight!
Plain language analysis:
Key winning hand:
The harshest data today can be summed up in two words - 'didn't crash'!
Core CPI annual rate expected 3.0%, actual 2.9% (a difference of 0.1% flips the bears)
Core CPI monthly rate expected 0.3%, actual 0.2% (Federal Reserve has one less bullet for interest rate hikes)
Translation: Inflation is not as stubborn as imagined, the Federal Reserve has more confidence to cut rates!
Crypto logic chain:
Rate cut expectations rise → Dollar weakens → Hot money flows into high-risk assets → BTC/ETH lead the charge!
(Refer to January 2023's CPI cooling, Bitcoin surged 20% in a week scenario)
My radical theory:
Don’t be fooled by the overall CPI rising to 2.7% year-on-year, the big players don’t care at all!
The crypto market only focuses on the six words 'core data lower than expected', tonight all traders are frantically refreshing a single phrase:
'The Federal Reserve's September rate cut is stable, let's start the bottom-fishing list!'
Hidden danger:
Although there are short-term benefits, a core CPI of 2.9% year-on-year is still too high (Federal Reserve target 2%), beware of Federal Reserve officials jumping out late at night to hawk: 'Inflation is still high, let's wait a bit longer to cut rates!' - This drama has been played three times in 2023, each time with a surge followed by a sharp drop!
For the upcoming layout direction, I plan to explore those altcoin profit opportunities with everyone, expecting a tenfold return is not a problem. Like and comment, and I’ll guide you through the entire bull market! #CPI数据来袭
