- The inflation rate has decreased, but it is still over the 2% goal rate set by the central bank.
- Bitcoin is trading at $35,152, down 4.54% in the last 24 hours.
The U.S. Labor Department has issued the highly anticipated U.S. Consumer Price Index (CPI) data for October, which indicated that the U.S. inflation came in at 3.2% at an annual pace, as contrasted to the market forecast of a 3.3% spike. Meanwhile, the U.S. CPI fell in October after rising 3.7% in September, suggesting that the aggressive posture of the U.S. Federal Reserve is having the desired effect of reducing inflation.
The cryptocurrency market was anticipating the CPI data since it might influence the central bank’s decision on how to proceed with policy rates in the future. Some market players’ worries have been allayed by signs of moderating inflation, which may prompt the Fed to adopt a more dovish approach.
The most recent numbers indicated that core inflation in the United States (inflation excluding food and energy) rose at a pace of 4% YoY, lower than the market had predicted (4.1%). The Core CPI rose 0.2% month-over-month, which was less than the 0.3% increase that was expected. Notably, October had no monthly change in the CPI.
Interest Rate Hike to Likely Halt
Meanwhile, the most recent numbers showed that the Federal Reserve’s tough attitude had successfully reduced inflation. The inflation rate has decreased, but it is still over the 2% goal rate set by the central bank.
Since rising interest rates have a depressing effect on the financial market in general, and especially on the riskier digital assets, inflation has been a drag on market mood all year. Notably, the market now expects a 99.7 percent possibility that the Fed will hold the interest rate steady at their forthcoming meeting, as indicated by the CME FedWatch Tool.
The crypto market has responded negatively continuing the ongoing dull phase. At the time of writing, most cryptocurrencies including Bitcoin are trading in red. Bitcoin is trading at $35,152, down 4.54% in the last 24 hours as per data from CoinMarketCap.
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