As a seasoned crypto investor with a knack for navigating market turbulence, I’ve learned to keep my eyes on the horizon and my fingers on the pulse of the economy. The recent volatility in the cryptocurrency market, fueled by anticipation of key inflation data, is nothing new to me.
In simpler terms, the unpredictable world of digital currencies, which often reacts strongly to major economic news, has been showing increased fluctuations before the announcement of crucial inflation figures.
The preferred measure of inflation showed an increase in July, suggesting that the Federal Reserve may lower interest rates for the first time in over four years.
On Friday, the Commerce Department reported that the Personal Consumption Expenditures Price Index rose by 0.2% for the current month and 2.5% compared to the same period last year. This growth aligns exactly with the forecast made by Dow Jones.
Policy makers at the Federal Reserve tend to emphasize the primary reading as a more reliable sign of long-term patterns. Over the past year, both the main and overall inflation rates have stayed constant compared to June.
Lately, figures like Chair Jerome Powell have expressed confidence that inflation will align with the Federal Reserve’s 2% goal once more.
Over the last seven days, the Federal Reserve Chair indicated that it’s now appropriate to modify our policies, sparking optimism for an interest rate reduction in the upcoming gathering of the central bank. Nonetheless, Powell refrained from providing details regarding when and how big this potential cut might be.
Crypto market reacts
The crypto market fell as investors anticipated the latest batch of inflation data. Several crypto assets are presently in the red. Bitcoin was down 2.97% in the last 24 hours; Ethereum, Shiba Inu, Solana and Chainlink were posting losses between 3% and 6%.
FET, TAO, WIF and Floki were posting significant losses between 7% and 18%.
In July, the U.S. revealed that its annual core Personal Consumption Expenditures (PCE) price index stood at 2.6%, slightly lower than the anticipated 2.7%. This figure is a slight decrease from the previous month’s rate of 2.6%. On a monthly basis, the core PCE price index for July remained unchanged at 0.2%. The predicted value was also 0.2%, consistent with the preceding month. In other words, the PCE in July remained stable compared to June.
— Wu Blockchain (@WuBlockchain) August 30, 2024
According to Dow Jones, the preferred inflation gauge by the Federal Reserve increased by 0.2% in July, as anticipated by economists. This PCE index, which measures the cost of various consumer items and services, might provide a clearer perspective on potential changes in interest rates.
Looking forward, we’ll closely monitor the crypto market’s response to the latest data releases. For now, though, the crypto market is experiencing a short-term push towards selling.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD COP PREDICTION
- USD CLP PREDICTION
- USD PHP PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD ZAR PREDICTION
- RIDE PREDICTION. RIDE cryptocurrency
2024-08-30 19:08