Meanwhile, prices retreated by 0.4% compared to the previous month instead of the 0.1% that economists were expecting. What’s more important, the annualized core inflation dropped by 20 basis points. Since this data excludes the impact of energy costs, it leaves out the impact of higher oil prices.
This explains why cryptocurrencies are booming today, as lower core inflation gives the Fed a reason to further delay an interest rate hike this year, or scrape it altogether.
Crypto Liquidations Spike After Break Above $1,800
Data from FedWatch shows that the odds that a rate cut won’t happen on September rose from 25% to 39% in just a day. Although still 61% of analysts are convinced that the Fed will raise rates by then, this is an interesting change in the overall perception of the macroeconomic backdrop.
Risky assets benefit from this kind of shift, and ETH’s case is particularly interesting as the token just broke above a key area of resistance and triggered a short squeeze along the way.
Source: Original Article
