Dear Readers,
This week, a risk-off sentiment is likely to dominate global markets as geopolitical tensions in the Middle East continue to escalate. These developments will be in the spotlight, influencing investor behavior and market movements.
Key US Economic Data on the Horizon
In addition to geopolitical factors, the US is set to release its September inflation data, which is crucial for the Federal Reserve's monetary policy decisions. This data will provide insight into current economic conditions and influence the Fed's future actions.
Consumer Price Index (CPI)
The US monthly Consumer Price Index (CPI) for September will be a significant data point for global markets. This release will be the first since the Fed implemented a notable 0.5% rate cut in September.
In August, US inflation eased to 2.5%, and forecasts suggest it may slow further to 2.3% in September, getting closer to the Fed’s 2% target. A higher-than-expected inflation reading could dampen hopes for additional rate cuts and negatively impact stock markets. Conversely, a lower reading might boost market sentiment.
Producer Price Index (PPI)
Alongside the CPI, the US Producer Price Index (PPI) will also be released. The PPI tracks changes in the selling prices of goods and services, focusing on wholesale prices. In August, the PPI increased by 1.7% year-on-year, indicating a cooling inflation trend. It is expected to rise by only 0.1% in September, down from 0.2% in the previous month.
Federal Reserve Meeting Minutes
The Federal Reserve and the European Central Bank (ECB) will also release their September meeting minutes this week. These documents will shed light on the discussions and decisions made during the Federal Open Market Committee (FOMC) meeting, providing valuable insights into the Fed's future policy direction.
While the Fed is anticipated to cut interest rates in November and December, Fed Chair Jerome Powell has emphasized that the central bank is not on a predetermined path; future decisions will rely on incoming data.
Crypto Market Update
As we navigate these economic developments, the global crypto market cap stands at $2.21 trillion, reflecting a 2.92% increase over the last day. The total crypto market volume in the past 24 hours has reached $51.79 billion, a significant 39.57% increase.
DeFi and Stablecoins
The decentralized finance (DeFi) sector currently contributes $2.99 billion, making up 5.78% of the total crypto market volume. Stablecoins account for $45.58 billion, which is 88% of the total 24-hour volume.
Bitcoin Performance
Bitcoin's dominance in the market is at 56.78%, down by 0.08% over the day. At the time of writing, Bitcoin is trading at $63,604.85, reflecting a 2.83% increase in the last 24 hours, according to Coinpedia market data. Meanwhile, many altcoins are showing declines, and the fear and greed index is at 50, indicating a neutral sentiment among investors.
As geopolitical tensions rise and key inflation data is released, global markets are poised for potential shifts. For a detailed Bitcoin Price Prediction and insights into how these factors may impact specific assets, be sure to read our in-depth analysis.
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