Bitcoin faces U.S. CPI test as analysts warn inflation relief may not be enough
Analysts say a 0.3% CPI rise could keep the Federal Reserve on track for another 25-basis-point hike in December.
- The Bureau of Labor Statistics releases the consumer price index Tuesday at 8:30 a.m., with forecasts showing a 0.3% increase for all items despite gasoline prices declining more than 4%.
- Chicago Fed President Austan Goolsbee warned Monday that inflation remains a primary concern, with officials worried about "sticky" price pressures in services, health insurance, and autos beyond sectors directly affected by tariffs.
- Economic growth remains strong at 3.4% with 165,000 nonfarm payrolls added in October, while markets price in an 80% probability of a rate hike at the December Federal Open Market Committee meeting.
- Bitcoin changed hands at around $74,750, down from peaks above $87,000 in early October as AI-related jitters and fading spot ETF demand weighed on the cryptocurrency.
- Investors await producer price data on Nov. 13 and Federal Reserve meeting minutes on Nov. 18. BofA economist Stephen Juneau said this report could "effectively lock in another 25bp hike.
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12 Articles
Bitcoin faces U.S. CPI test as analysts warn inflation relief may not be enough
Bitcoin stands at $74,500, but now all eyes are focused on the US inflation data in the afternoon. You could decide whether the Fed will increase interest rates in December. What that means for the price. Source: BTC-ECHO BTC-ECHO
Tomorrow’s CPI inflation report will be, well, weird–and it probably won’t move stocks and bonds
Maybe tomorrow’s report on the CPI inflation rate for October will move expecations for an interest rate increase from the Federal Reserve at its December 9 meeting. But it seems unlikely. The CME FedWatch tool is projecting 84.5% odds of a 25 basis point increase. That’s up from 74.4% odds a week ago. It would take a major surprise in the Consumer Price Index to change the market’s sentment. We’re not likely to get it for two ressons.
According to CNBC, the US October ICC should rise 0.3%, with core by 0.2%; market sees more than 80% interest rate high chance by the Fed in December
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