A Strong Crypto Rally Is Set To Recoup Yesterday’s Loss, Here’s Why
The Consumer Price Index released yesterday showed an 8.3% YoY inflation, instead of the expected 8.1%. As a result, the crypto market crashed hard. Bitcoin price dropped over 10% in the last 24 hours. Meanwhile, Ethereum dropped another 8%. However, the Producer Price Index data about to be revealed can start a major crypto rally.
The producer Price Index is the change in price that producers receive for providing their goods and services. The US Bureau Of Labour Statistics also reveals this data.
Meanwhile, Elon Musk’s deflation warning looks more likely as the Fed is all set for a mega hike.
Why PPI Is Extremely Important For Crypto Rally
Yesterday’s CPI data strengthened the Fed’s hawkish stance. The Federal Reserve is all set for a jumbo hike in the next FOMC meeting on the 21st of September. Experts believe that markets are pricing in a 48% chance of a 100 bps interest rate hike. Despite the mega hike, the Fed will not pivot from its stance for at least another FOMC meeting.
However, many believe the CPI to be a lagging indicator of inflation. The prices of products and services have undoubtedly gone down. Therefore many believe that today’s PPI data, a more accurate representation of the inflation level, can temper the Fed’s stance.
Michael van de Poppe, a major crypto influencer and CEO of Eight Global, believes that the PPI can rally the crypto market.
@wolf-of-streets, a major crypto influencer, reveals that the PPI may even be more important than the CPI data released yesterday. The expected MoM change is -0.1%. If the expected PPI indeed holds, the crypto markets will rally as it is a sign of cooling inflation. He also reveals that deflation is in the pipeline.
Since the COVID price surge, the price of most commodities has gone down. Meanwhile, production has become cheaper. Therefore, the price of risky assets can surge anytime now.
When Will PPI Be Revealed
The US Bureau of Labor Statistics reveals the PPI data. It will be released today at 6:00 PM IST or 8:30 AM EST.
Play 10,000+ Casino Games at BC Game with Ease
- Instant Deposits And Withdrawals
- Crypto Casino And Sports Betting
- Exclusive Bonuses And Rewards
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Ripple Joins Mastercard Crypto Partner Program to Advance On-Chain Payments
- Breaking: Crypto Prices Jump As IEA Members Agree To Release Record 400M Barrels Of Oil
- Breaking: U.S. CPI Holds Steady at 2.4% as Iran War Raises Inflation Concerns
- Bitget Launches GetClaw Agent as Exchange Integrates AI Tools For Crypto Trading
- Breaking: Binance Sues WSJ For Defamation Over Iran Sanctions Article as DOJ Opens Probe
- Bitcoin Price At Risk of Losing $65k as Iran Warns of “Continuous Strikes” That May Push Oil to $200
- XRP Price Prediction as Goldman Sachs Becomes Biggest Holder of Ripple ETFs
- Circle (CRCL) Stock Price Prediction Ahead of CPI Data Release-Is 120 Next?
- Bitcoin Price Today: President Trump Signals Iran Conflict May End Soon As BTC Eyes $72k
- Top Analyst Explains Why Pi Network Price May Soar to $0.50 This Week
- Is MSTR Stock Going to Rally $150?
