With CPI (Consumer Price Index) at 2.4%, which is below expectations, and FOMC (Federal Open Market Committee) decision approaching, here’s what this means for crypto in the short term — and what you could consider doing:
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🔍 CPI at 2.4% – Bullish for Risk Assets
• Lower CPI = Cooling inflation
• Reduces pressure on the Fed to keep rates high.
• Market expects dovish signals or future rate cuts.
• Crypto and tech stocks generally benefit from such expectations.
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🧠 FOMC – What to Expect
• High chance the Fed holds rates steady this meeting.
• Market focus will be on:
• Powell’s tone in the press conference.
• Updated dot plot (rate hike/cut forecast).
• Forward guidance: If they hint rate cuts might start in Sep-Dec, crypto could surge.
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✅ What You Can Do
🔹 Short-Term (Next 48–72 hrs):
• Expect volatility into and after the FOMC statement.
• If you’re trading:
• Scalp or intraday setups are better until post-FOMC clarity.
• Use tight stop-losses — both bulls and bears will be hunting liquidity.
• Likely ETH/BTC breakout setups after the announcement.
🔹 Medium-Term (June–July Outlook):
• If the Fed is dovish → accumulate dips.
• Focus on:
• ETH (merge narrative reviving + ETF approval hopes)
• SOL, OP, LDO, LINK (strong beta to macro)
• Meme coins for fast rotation plays (but risky)
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🔻 What to Avoid
• Over-leveraging before FOMC.
• Holding illiquid small caps without stops.
• Assuming “CPI low = instant pump” – it often pulls back before the real move. #TradingPairs101 $ETH