\u2756 U.S CPI (MOM) (MAR) ACTUAL: 0.4% VS 0.4% PREVIOUS; EST 0.3%<\/p>\n
\u2756 U.S CPI (YOY) (MAR) ACTUAL: 3.5% VS 3.2% PREVIOUS; EST 3.4%<\/p>\n
\u2756 U.S CORE CPI (MOM) (MAR) ACTUAL: 0.4% VS 0.4% PREVIOUS; EST 0.3% <\/p>\n
\u2756 U.S CORE CPI (YOY) (MAR) ACTUAL: 3.8% VS 3.8% PREVIOUS; EST 3.7%<\/p>\n
\u2014 Walter Bloomberg (@DeItaone) April 10, 2024<\/a><\/p>\n<\/blockquote>\n The market\u2019s response to these figures was swift, with immediate implications for interest rate expectations. The swaps market, a reliable gauge of monetary policy expectations, showed a decreased likelihood of the Federal Reserve cutting interest rates in the near future. According to CME Group\u2019s FedWatch tool, the probability that rates will remain unchanged at the Fed\u2019s May meeting is now at 94.1%, with a 81.3% chance of holding steady through June.<\/p>\n <\/p>\n Mohamed A. El-Erian, offering his perspective, stated<\/a>, \u201cThe market is now pricing less than two Federal Reserve cuts this year as it takes another step in the \u201clater and fewer\u201d direction for the excessively dependent Fed. The major stock futures indices are down over 1%, and the dollar is stronger. All this puts the Fed in quite a tricky position \u2014 one in which it should take a holistic view of what\u2019s ahead for the economy as a whole. But will it?\u201d<\/p>\n Christopher Inks sought to temper reactions by reminding the public of the Fed\u2019s preference for the Personal Consumption Expenditures (PCE) Price Index as its primary inflation measure.<\/p>\n \u201cSince we are seeing people replying about what the Fed is going to do re: rate cuts as a result of the CPI release this morning, I will once again remind you that the Fed stopped focusing on the CPI about a decade ago. It\u2019s preferred inflation gauge is the PCE which comes out at the end of the month,\u201d Inks explained<\/a>.<\/p>\n The crypto market has been closely watching the data. Charles Edwards pointed out the adverse effects of rising inflation and decreasing liquidity on cryptocurrencies, stating<\/a>, \u201cInflation rising again and more than expected. Likely related [to] why we saw liquidity start to fall the last weeks also. Not good for crypto if these two trends continue.\u201d<\/p>\n Matt Hougan (CIO of Bitwise) and Dave Weisberger (Chairman of CoinRoutes) offered a contrary view<\/a>, suggesting that current market conditions may actually favor cryptocurrencies in the long run. Hougan noted, \u201cWhether the Fed cut rates 25bps in June or not isn\u2019t the long-term driver of Bitcoin prices right now. It\u2019s a marginal factor. ETF flows + rising deficits matter more, and they are lining up very well for Bitcoin.\u201d<\/p>\n Weisberger, sharing Hougan\u2019s optimism, added, \u201cAgreed. My contrarian take is this is a buying opportunity as these numbers show the strongest cracks in the dollar hegemonic FIAT experiment yet\u2026 Gold, for the moment, is getting it right and Bitcoin will inevitably react. (In the meantime, the whale playbook of pushing the market down to buy cheaper is still alive\u2026).\u201d<\/p>\n At press time, BTC traded at $68,277.<\/p>\n<\/span>Market Reactions And Federal Reserve\u2019s Dilemma<\/span><\/h2>\n
<\/span>Implications For Bitcoin And The Crypto Market<\/span><\/h2>\n
![\"Bitcoin](\"https:\/\/www.bitrabo.com\/discover\/wp-content\/uploads\/2024\/04\/1712765766_532_US-CPI-Comes-In-Hot-What-This-Means-For-Bitcoin.png\")