CFM GROUP (VN), [13 Apr 2024 at 08:33:41]:
For the third time in a row, US CPI exceeded expectations, reaching 3.5% in March. This compares with 3.2% in February and 3.1% in January. While the Fed was willing to discount the higher-than-expected figures for seasonal nuances, the latest reading could hurt the case for a June rate cut. This has been reflected in forecasts, with consensus now reflecting just a 19% chance of a rate cut in June, compared with 43% before the figures were released.
While so far this year, macroeconomic factors have been overshadowed by the launch of the Bitcoin ETF spot, falling net inflows and ETF volumes are shifting the Bitcoin and crypto narratives back macro indicators, meaning the Fed's decisions could have a heavier impact on prices than in the first quarter of this year.
However, Fed Chairman Jerome Powell stated last week that "the policy rate is probably at its highest level for this tightening cycle," meaning there is, more than likely, no liquidity in the market. Cryptocurrencies will rise rather than vice versa, which will support asset prices.
