A recent report from Bybit and FXStreet highlights how today's inflation data in the U.S. could be a decisive factor for global financial markets.
Fed Expectations
According to CME FedWatch data, market participants are pricing in a 92% probability of a rate cut from 4.5% to 4.25%. Softer inflation readings could further strengthen expectations for additional cuts this year.
Impact on Bitcoin
Bitcoin remains below its all-time high of $124,500 reached in August. A softer CPI could propel Bitcoin past $120,000 and potentially toward $135,000 by year-end, while hotter-than-expected figures could trigger a correction below $107,200.
Influence on Stock Markets
The S&P 500 is holding above 6,500, with the potential to target 7,000 if inflation data eases and rate cut expectations firm up.
The report indicates that inflation dynamics will have significant impacts on all risk assets, including cryptocurrencies and stock markets. This week could be pivotal for shaping trading strategies.
