US CPI Data Influences Fed Rate Cut Probability and Crypto Market Sentiment

According to BlockBeats, on September 12, QCP Capital released a report highlighting that the recently announced U.S. Consumer Price Index (CPI) data met expectations, with the core CPI rising slightly month-over-month to 0.3%, surpassing the forecasted 0.2%. This development has increased the likelihood of a 25 basis point rate cut by the Federal Reserve to 85%, marking the highest probability in a month. In the cryptocurrency market, Bitcoin (BTC) rebounded from its intraday low, climbing back above $57,000, indicating strong demand and growing bullish sentiment. This optimism is reflected in options activity, with a growing number of investors purchasing call options expiring between October and December. This week, BTC volatility decreased by 12 points due to the impact of the CPI data release and the presidential debate. With no significant macroeconomic events on the horizon, it is anticipated that volatility will continue to decline ahead of next week's Federal Reserve meeting. Given the upcoming rate cut and the U.S. presidential election, which are significant economic events, the market is building momentum.