Crypto Daily – With a possible 2.5% CPI figure due to be released later on Wednesday, the stage is being set for a potential 50 basis points cut in interest rates by the Federal Reserve a week from now. While a trend reversal to the upside for may not be imminent, it could now be baked into the cake for this last quarter of the year.
Lower CPI figure expected
According to the Kobeissi Letter account on X, the big U.S. banks are split in their predictions of either a 2.6% or 2.5% Consumer Price Inflation (CPI) figure, which will be announced later today. If inflation does come in at 2.5% or lower, this will be the lowest figure since February 2021, and this will be excellent news for risk assets such as Bitcoin.
However, historically speaking, each time when the Fed pivot has taken place, this has anticipated some big falls in the market. Therefore, caution needs to be adhered to, at least for the short to medium term.
Bearish divergence for S&P 500
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