Hot Inflation Dey Boost USD Yields, Crypto ETF Inflows Dey Surge
For July, PPI jump +0.9% MoM wey pass di +0.2% wey dem expect, na profesional services lead di way. University of Michigan inflation expectations climb reach 4.4% (1 year) and 3.4% (5–10 years), wey make US dollar and Treasury yields go high. For crypto market, Bitcoin and Ethereum price just dey waka steady as Treasury Secretary Bessent confirm say no more government Bitcoin buy or gold reallocation dey come. Meanwhile, Bitcoin plus Ether ETFs record big weekly inflow of $17bn, push dem enter top five equity funds. Market eyes now dey for Fed Chair Powell speech for Jackson Hole, wey no go get many dovish surprises because inflation still dey high. With consumer sentiment differ from income outlook and fund managers cash dey low for cycle, crypto traders suppose prepare for wahala (volatility) as September dey come.
Neutral
Mixed signals from hot inflation prints and record ETF inflows point to one neutral outlook. Di unexpected PPI jump and high inflation expectations push USD and Treasury yields go up, creating short-term wahala for crypto prices. But strong Bitcoin and Ether ETF inflows of $17bn show say institutional demand dey and e dey provide support. Historically, similar yield spikes don weigh down crypto before strong ETF demand come back. With Jackson Hole no likely to deliver fresh dovish signals and market positioning dey bubble, crypto traders dey face balanced risks and chances for both sides.