NewsletterGoldman Sachs Predicts Interest Rate Hike For Next Three Months
With the release of Consumer Price Index on Tuesday, the cryptocurrency market responded negatively. The data showed an inflation of 8.30% year on year while the core CPI was also worse than expected. This means that there is a possibility of a one percentage point interest rate hike. Overall, the inflation data is not a good sign for the crypto market, which could face a wave of volatility.
The Consumer Price Index or CPI is a key index that measures the increase or decrease in the price paid by the consumers on a monthly basis. This makes CPI an important indicator of the state of the economy.
Goldman Sachs Predicts Interest Rate Hike
Meanwhile, Wall Street bank Goldman Sachs predicts a 75bp hike in September. Whereas in in November and December the bank said it expects a 50bp hike.
“We now expect a 75bp hike in September followed by 50bp hikes in November and December.”
The CME Fed Watch Tool showed the possibility of a 20% chance of a 100 bps or one percentage point hike following the CPI data release. Following the CPI data release will be the Fed’s FOMC meeting scheduled for September 21. Outcome from the meeting would decide whether there would be 100 basis point interest rate hike or not. The crypto market is also anticipating the successful completion of The Ethereum Merge this week. Market analysts feel The Merge could prove to be a turnaround event for crypto industry, which was marred by a series of setbacks.
Earlier in the day, the prices of Bitcoin and Ethereum fell following the release of Consumer Price Index data. The top cryptocurrencies BTC and ETH dropped close to 6% in a space of a few minutes. As of writing, BTC price stands at $20,817.10, down 6.39% in the last 24 hours, according to price tracker CoinMarketCap. Ethereum (ETH), on the other hand, stands at $1,613.64, down 5.76% in the last 24 hours.
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Prediction Platform Polymarket Relaunches in U.S. Following CFTC Approval
- December Fed Rate Cut Prospects Strengthen After ADP Shows Deepening Labor Market Weakness
- Trump-Backed World Liberty Financial to Roll Out RWA Products in January
- Crypto Exchange Bitget Teams Up With Julián Álvarez to Spotlight GetAgent’s Trading Capabilities
- MSCI Index Removal Threat Grows as Strategy Enters Negotiation Talks, Saylor Confirms
- Pepe Coin Price Risks 80% Crash as Alarming Pattern Forms and 6.5T Inflows
- Chainlink Price Surges 20%: What’s Driving Massive Upswing?
- Solana Price Poised for 25% Rally as ETF Inflows Surge Past $650M
- Will HYPE Price Reach $50 After Sonnet Finalizes Its $1B Digital Asset Merger?
- AIAO Price Prediction: Projected 659% Surge from $5.56 to $42.22 by Early 2026!
- Ethereum Price Breaks $3K as Fusaka Upgrade Goes Live Today: How High Can ETH Surge?
