US CPI down 0.4% month-on-month… Meets market expectations
US Core CPI Surpasses Expectations… Expectations for ‘Big Cut’↓
BTC rebounds after recovering losses on expectations of rate cuts
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The U.S. Department of Labor announced that the U.S. CPI for August rose 2.5% year-on-year and fell about 0.4% from the previous month, meeting market expectations. As the CPI, which is the main data used by the U.S. Federal Reserve (Fed) in determining interest rates, met market expectations, the U.S. stock market closed higher and the cryptocurrency market also showed a strong upward trend.
Despite the easing of inflation, the rise of cryptocurrencies appears to be limited. This is because the core CPI, which excludes energy and food prices, exceeded market expectations. The core CPI in the United States in August rose by about 3.2% year-on-year, exceeding market expectations by about 0.2%.
This is because expectations that the Fed would implement a 50bp rate cut, the “big cut,” in September have disappeared as core CPI has risen.
Bitcoin fell after President Trump, the 'pro-cryptocurrency' candidate, was effectively defeated in the US presidential election TV debate held on the 10th (local time). Afterwards, the CPI, which has a major impact on the Federal Reserve's interest rate decision, rebounded slightly as it met market expectations.
In particular, the $55,000 level that the market was worried about did not break down. After Bitcoin plunged after the US presidential election TV debate on the 11th, concerns were raised that Bitcoin could crash based on data from the futures market.
On-chain analysis platform Coinglass said in a report published on the 11th that "if Bitcoin falls below $55,000, a total of about $765 million (about 1.24 trillion won) worth of bullish (long) bets could be liquidated."
Reporter Kwon Seung-won ksw@
