US CPI Rises By 3.2%, Will It Boost Gains In The Crypto Market?

The U.S. Labor Department has released the much-awaited U.S. Consumer Price Index (CPI) data for October, which showed that the U.S. inflation rose 3.2% at an annual rate, as compared to the market anticipation of a 3.3% surge. Meanwhile, the decline in the U.S. CPI in October, after advancing at a pace of 3.7% in September, suggested that the inflation is cooling due to the aggressive stance of the U.S. Federal Reserve.

The crypto market was eagerly waiting for the CPI data, as it could set the future stage for the central bank to decide their next stance with the policy rates. However, the cooling inflation seems to have allayed some concerns of the market participants, as the Federal Reserve might consider a dovish stance given the declining inflation.

US Core CPI Soars 4% In October

The latest data showed that the U.S. Core inflation, which excludes food and energy prices, jumped at a rate of 4% YoY, down from the market expectation of 4.1%. On a monthly basis, the Core CPI advanced 0.2%, as compared to the consensus estimate of a 0.3% surge. Notably, on a monthly basis, the CPI remained unchanged in October.

Meanwhile, the latest data indicated that the aggressive stance of the Federal Reserve has been effective in bringing down inflation. However, the inflation, although cooled, remains at a higher level than the 2% target rate of the central bank.

The inflation has continued to weigh on the market sentiment throughout the year, as higher interest rates tend to dampen the sentiment in the financial market, let alone the risk-bet digital assets. Meanwhile, the market now anticipates the Producer Pride Index data release, which is scheduled for Wednesday, November 15, as it will shed more light on the current economic health of the largest economy in the world.

Notably, according to the CME FedWatch Tool, the market now anticipates a 99.7% chance of the Fed keeping the interest rate unchanged at their upcoming meeting.

Also Read: Hedge Funds’ Skepticism Grows as Asset Managers Go Long on BTC

Crypto Prices & Market Performance

The crypto market has been moving towards the south on Tuesday, November 14, after witnessing significant gains over the past few weeks. Meanwhile, as of writing, the global crypto market cap declined 1.17% to $1.39 trillion, while the trading volume soared 23.33% to $62.01 billion. Meanwhile, the crypto market fear and greed index was at 75, suggesting a greed scenario in the market.

Among individual crypto prices, the Bitcoin price was down 0.67% to $36,623.11 during writing, and its trading volume jumped 32.04% to $19.09 billion. On the other hand, the Ethereum price plunged 0.94% and traded at 2,033.42, while its trading volume over the past 24 hours jumped 35.04% to $13.21 billion.

Simultaneously, the BNB price ticked down 0.56% to $244.15, with its volume increasing 18.13% from yesterday to $903.39 million. The Solana price noted a slump of 6.38% to $53.48, and its trading volume added 27.97% to $2.97 billion over the last 24 hours.

Also Read: Opyn Co-founder Zubin Koticha Resigns Amid CFTC’s Regulatory Charges