On the other hand, inflation data that surpasses expectations may intensify the Federal Reserve’s motivation to uphold a stringent monetary policy, increasing the chances of an interest rate increase during the meeting on October 28. In this context, escalating US bond yields and dollar strength could exert temporary selling pressure on Bitcoin.
Currently, the market anticipates a 21.6% likelihood of a rate hike in October, while the probability of rates remaining steady stands at 78.4%. This comes alongside the release of the US inflation data for September, which the Fed takes into account for its interest rate decisions.
Here are the recently published US inflation statistics:
Annual Consumer Price Index: Released at 3.7% – Projected 3.6% – Previous 3.4%
Monthly Consumer Price Index: Released at 0.6% – Projected 0.6% – Previous 0.4%
Annual Core Consumer Price Index: Released at 2.6% – Projected 2.5% – Previous 2.4%
Monthly Core Consumer Price Index: Released at 0.3% – Projected 0.2% – Previous 0.3%
The consumer price index serves as an essential metric for analyzing consumer purchasing habits and shifts in inflation within the US economy.
Bitcoin’s Initial Response Following CPI Data!
*This information is not to be construed as investment advice.