cryptocurrency

What does today’s US inflation data mean for the cryptocurrency markets?

Bitcoin has continued to hover around $30K in the past few days, but is down to $29,449.32 at the time of writing, after the market received US CPI inflation data released today at 1.30pm GMT. The event was significant, says Marcus Sotero, an analyst at UK digital asset broker GlobalBlock“It gives us a better understanding of whether or not inflation has already peaked or is just beginning to peak, which is what the Federal Reserve needs to ease monetary policy and thus lead to higher markets.”

Economist Mohamed El-Erian, who accurately predicted nearly a year ago that high inflation in the US would continue, now accurately predicts that it has not peaked yet, and believes it is expected to worsen in June.

He said, “My concern is that the June print will be worse than the May print. Those who have boldly said that inflation has peaked and is declining may have to change their minds.”

The Labor Department said Friday that its consumer price index rose 8.6% in May compared to the same month a year ago. So, in fact, US consumer inflation has reached its highest level in more than four decades, as rising energy and food prices drive up prices. This now represents its highest official reading since December 1981.

Economists polled by the Wall Street Journal had expected the CPI to rise 8.3% in May.

Cathy Wood, CEO of Ark Invest has an opposing view, as it believes that higher stocks will lead to lower prices over the coming months, leading to an uptick in technology and cryptocurrencies by next month.

Investment bank Piper Sandler Agrees with Cathy, they released a report suggesting that restocking surplus inventory alone would help core inflation fall to 2% from the last reading of 6.2%.

#todays #inflation #data #cryptocurrency #markets

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button