Crypto Down Before US CPI: Rally Under 2.8%, Drop Above
Crypto market wahala spike as investors dem dey prepare for US Consumer Price Index (CPI) release. If US CPI inflation come 2.8% or below, market fit get better small short-term rally. But if e go pass 2.8%, e go force Federal Reserve make dem keep high interest rates, wey fit make crypto asset dem sharply sell-off. High inflation plus steady rate hikes no good for speculative tokens, but if price start cool down, e fit make bullish feeling dey again. Traders suppose ready for quick market swings, see sharp dips as chance to buy but still maintain risk controls and diversify portfolio.
Neutral
Dis news dey act as one kind binary catalyst, wit di US CPI reading fit cause sharp market moves. Based on history, wen di CPI lower pass wetin dem expect—like for March 2023—e dey trigger quick crypto rallies, but wen inflation pass wetin dem forecast for mid-2022, e lead to heavy sell-offs. If di CPI drop reach 2.8% or below, strong optimistic feeling and possible Fed rate cuts fit help market rise. On di oda hand, if e reach pass 2.8%, e fit force Fed make dem keep di interest rate high, wey go make risk assets lose value and cause even more decline. For short term, traders make dem ready for plenty wahala (volatility) around di time wey dem go release di data. For long term, if inflation high steady, e fit keep di market in bad mood (bearish), but if inflation cool down, e fit start better market movement (bullish). So, di overall effect na neutral, e depend on how di data come out.