Hi HODLers, Hiveans and Lions,
CryptoMarkets are up but mostly because of the latest CPI (inflation) release. Why is that linked to crypto? Well long story short:
- Inflation down = More FED Rates Cuts = Cheap Money = BullMarket for Asset prices (Stocks, Real Estate AND Crypto).
Inside this nomber, what was interesting is that Core Goods and Services were under control. Energy prices made up a big chunk of the inflation increase in December which is always volatile and usually does not "stick".
FED seems well on track to get the Core Inflation number <3% in the coming year!
“The stronger labor market data have taken away any urgency, and we suspect that uncertainty about potential tariff increases will deter the (Fed) from cutting for now,”
There would be a lot of moving parts with the upcoming administration. Nevertheless, economists at JP. Morgan estimated that a 10% universal tariff which has been floated by Trump would increase consumer prices by 0.3/0.6% , depending on how much the dollar moves.
As you can see below, Market have already adapted to this new number as now the market expects that we should have 1 or more cuts in 2025.
Exciting times ahead!
Stay safe,