🔥ATTENTION🔥
💸Let's understand both the CPI INFLATION and the PPI that were announced this week
👉They AFFECT DIRECTLY #Bitcoin and #crypto for these reasons:
Did the investors' outlook change regarding INTEREST RATE CUTS⁉️
🔸On Wednesday:
-The MONTHLY CPI fell from 0.2% to 0.1%, while it was expected to remain at 0.2%.
-The CORE CPI (excluding food and energy) MONTHLY FELL from 0.2% to 0.1%, while a RISE to 0.3% was expected.
-In light of this data, $BTC ROSE.
🔸On Thursday:
-The MONTHLY PPI went from -0.2% to 0.1%; although it ROSE, it was a BETTER figure than expected (0.2% was expected).
-The CORE PPI (excluding food and energy) MONTHLY went from -0.2% to 0.1%; although it ROSE, it was a BETTER figure than expected (0.3% was expected).
-In light of this data, $BTC ROSE.
What do these GOOD INFLATION DATA mean for financial markets⁉️
▪️These good data mean that the FED is achieving its goal of bringing inflation to 2%.
▪️Given this data, futures traders on the interest rate see an 80% chance of a cut in September.
▪️They also expect another cut in October or December.
📍It seems that it is just a matter of time before the FED cuts the interest rate.
📍If so, the markets would react positively, as cuts lower credit costs, hence increasing the circulation of dollars and making the dollar cheaper.