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A Crucial Decision by the FED is Just Moments Away! Here are the Latest Insights from Analysts
With today’s positive inflation figures, the FED’s interest rate decision is imminent. Here are the most recent perspectives from analysts.
Author:
Mete Demiralp
12.06.2024 – 17:21
Update:
6 seconds ago
0
Unexpected changes have occurred in the US Consumer Price Index (CPI). The unadjusted CPI annual rate for May was reported at 3.3%, lower than the anticipated 3.4%, and a decrease from the previous rate of 3.4%.
Similarly, the unadjusted core CPI annual rate for the same month was 3.4%, falling below the expected 3.5% and the previous rate of 3.6%. This represents the lowest core CPI annual rate since April 2021.
The decline in CPI is primarily attributed to the decrease in gasoline prices. Currently, the market predicts a 25 basis point interest rate cut by the Federal Reserve in November with 100% certainty. However, the likelihood of a rate cut in September remains uncertain.
In the world of cryptocurrencies, analysts from hedge fund QCP Capital shared their perspectives. They noted that leading up to the release of CPI data and the outcome of the Federal Open Market Committee (FOMC) meeting, Bitcoin (BTC) and Ethereum (ETH) spot prices remained relatively stable.
Analysts expressed optimism due to several reasons:
– BTC futures swap points saw an increase from yesterday’s lows of 10%, indicating traders are profiting from base trades by closing short positions.
– A significant rise in the funding rate today led to aggressive bond purchases expiring on June 13, suggesting the market is positioned for an upward surprise.
– With the stock market hitting record highs for the second consecutive year, analysts believe that a steady CPI and a neutral decision from the FOMC could drive the crypto market to new heights once again.
*This is not financial advice.
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