Let's see, because in a matter of hours, the CPI will arrive as the most anticipated event of the week. Expectations are set at 2.7% year-over-year, but we already know that markets never cooperate as they should, so get ready for volatility.
Let's see what happens in each scenario:
**If the CPI comes in hotter than 2.7%**
Let's see what happens then. Hotter data means more persistent inflation, so the rate cuts that many expected disappear from the horizon. The dollar gains strength, and risk assets like crypto face immediate pressure. Traders begin to adjust positions, Nasdaq alarms go off, and suddenly everyone remembers that inflation exists. Bitcoin, Ethereum, and XRP experience downward movements as the market reprices the scenario of higher rates for a longer period.
**If the CPI comes in cooler than 2.7%**
This is when the party begins. Weaker inflation data open the door to more aggressive rate cuts. Traders start to anticipate a more dovish Fed than expected. Bonds relax, stocks recover ground toward new highs, and crypto shifts from forgotten to "I always believed in this project" in minutes. It’s the bullish scenario everyone longs for.
**If the CPI hits exactly 2.7%**
This is the most treacherous outcome. The market remains in a gray zone, with no clear direction. Lateral movements dominate the session, false breakouts occur everywhere, stop-loss orders are triggered indiscriminately, and no one really knows where the money is headed.
Let's see, then, because in less than an hour, a number will determine the tone of the coming weeks. Jerome Powell won't even need to speak; the CPI data speaks for itself. Fingers ready, volatility waiting, and the crypto market on a tightrope.
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Let's see, because in a matter of hours, the CPI will arrive as the most anticipated event of the week. Expectations are set at 2.7% year-over-year, but we already know that markets never cooperate as they should, so get ready for volatility.
Let's see what happens in each scenario:
**If the CPI comes in hotter than 2.7%**
Let's see what happens then. Hotter data means more persistent inflation, so the rate cuts that many expected disappear from the horizon. The dollar gains strength, and risk assets like crypto face immediate pressure. Traders begin to adjust positions, Nasdaq alarms go off, and suddenly everyone remembers that inflation exists. Bitcoin, Ethereum, and XRP experience downward movements as the market reprices the scenario of higher rates for a longer period.
**If the CPI comes in cooler than 2.7%**
This is when the party begins. Weaker inflation data open the door to more aggressive rate cuts. Traders start to anticipate a more dovish Fed than expected. Bonds relax, stocks recover ground toward new highs, and crypto shifts from forgotten to "I always believed in this project" in minutes. It’s the bullish scenario everyone longs for.
**If the CPI hits exactly 2.7%**
This is the most treacherous outcome. The market remains in a gray zone, with no clear direction. Lateral movements dominate the session, false breakouts occur everywhere, stop-loss orders are triggered indiscriminately, and no one really knows where the money is headed.
Let's see, then, because in less than an hour, a number will determine the tone of the coming weeks. Jerome Powell won't even need to speak; the CPI data speaks for itself. Fingers ready, volatility waiting, and the crypto market on a tightrope.