August\u2019s inflation report didn\u2019t do much to shake things up in the crypto world. Bitcoin and other major tokens barely budged, with investors clearly holding their breath ahead of the Federal Reserve\u2019s upcoming rate decision.<\/p>\n\n\n\n
The Consumer Price Index (CPI), released by the Bureau of Labor Statistics on September 11, showed prices rising 2.9% year-over-year<\/strong>, slightly higher than July\u2019s 2.7%. Rising grocery and energy bills drove much of that increase. Meanwhile, core CPI<\/strong> which excludes food and energy stayed steady at 3.1%<\/strong>.<\/p>\n\n\n\n On the surface, the numbers weren\u2019t alarming, but they added to a complicated picture: jobless claims are up, payroll numbers were revised downward, and the overall economy looks a bit less stable. Still, crypto markets barely blinked.<\/p>\n\n\n\n Sentiment tells the real story. The Crypto Fear & Greed Index<\/strong> sat at 47 (Neutral)<\/strong> after the data came out. It hasn\u2019t moved much all week 43 yesterday, 44 last week showing that traders are intentionally sitting on the sidelines until they see what the Fed does. That\u2019s a sharp change from just a month ago, when sentiment peaked at \u201cGreed\u201d (62)<\/strong> and even hit \u201cExtreme Greed\u201d (88)<\/strong> earlier this year.<\/p>\n\n\n\n The Fed now has a thorny decision ahead. Inflation pressures aren\u2019t easing as quickly as hoped. In August:<\/p>\n\n\n\n Markets are betting the Fed will still move ahead with a quarter-point rate cut<\/strong> at its September 17\u201318 meeting<\/strong>. According to CME\u2019s FedWatch tool, there\u2019s an 88% chance<\/strong> of a smaller cut and an 11% chance<\/strong> of a deeper half-point move. By year-end, traders expect 75 basis points of total cuts<\/strong>.<\/p>\n\n\n\n For now, though, crypto is stuck in wait-and-see mode. August\u2019s CPI may have raised the stakes, but everyone knows the real market mover comes next week when the Fed makes its call.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" August\u2019s inflation report didn\u2019t do much to shake things up in the crypto world. Bitcoin and other major tokens barely budged, with investors clearly holding their breath ahead of the Federal Reserve\u2019s upcoming rate decision. The Consumer Price Index (CPI), released by the Bureau of Labor Statistics on September 11, showed prices rising 2.9% year-over-year,…<\/p>\n","protected":false},"author":3,"featured_media":11321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[69,1022,469],"class_list":["post-11309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-bitcoin","tag-cpi","tag-crypto-market"],"yoast_head":"\n\n
What\u2019s Next?<\/h3>\n\n\n\n
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