this Consumer Price Index Retail sales data for July came in weaker than expected, giving the Federal Reserve the green light to cut interest rates in September.
Headline CPI inflation came in at 2.9%, below the expected 3.0%. Meanwhile, core CPI came in at 3.2%, in line with market expectations.
🚨 Latest news: US CPI annual inflation rose 2.9% in July, lower than the expected 3.0%. Core CPI inflation rose 3.2% year-on-year, in line with the expected 3.2%. The Federal Reserve has been approved to cut interest rates in September. pic.twitter.com/j70ohmDJHM
— Jesse Cohen (@JesseCohenInv) August 14, 2024
After the CPI was released, the price of Bitcoin reached as high as $61,500 before falling back slightly. However, experts predict that Bitcoin will continue to maintain its strong upward momentum in the coming days.
New meme coins, e.g. Free Pepe Demand is strong as investors prepare for the next bull run.
US CPI exceeds market expectations – will Bitcoin price hit a new all-time high?
Analysts believe that lower-than-expected CPI inflation is bullish for the cryptocurrency market, especially after Tuesday’s PPI rise.
Even before this week’s bullish inflation data, a September rate cut was all but certain. The Fed had to intervene with quantitative easing after a weak July jobs report and stubbornly high unemployment fueled recession fears.
However, today’s bullish CPI data significantly increased the possibility of a 50 basis point rate cut, rather than the 25 basis points that the market had expected.
really, CME Fed Watch Currently, there is a 40% chance that the Fed will cut interest rates by 50 basis points in September. In addition, the bank also expects the central bank to reduce its target rate by 100 basis points by the end of the year.
It is worth noting that the market initially expected interest rates to be cut by only 25 basis points in 2024.
This shift in market expectations could be extremely positive for the cryptocurrency market. Bitcoin prices show a significant correlation with global liquidity, which is expected to increase significantly following the implementation of quantitative easing this year.
Therefore, experts predict that BTC will hit a new all-time high. For example, Micahel van de Poppe of MN Trading expects the strong bullish momentum to continue as long as the $615,000 resistance level is broken.
Today is a big day, it’s CPI day.#Bitcoin Staying the same, today is the trend-determining day. If we break above $610,000-615,000, the path to new all-time highs is open. pic.twitter.com/dIQCZ6Xapl
— Michael van der Poppe (@CryptoMichNL) August 14, 2024
As a result, gold prices hit a new high today as investors rushed to buy ahead of the upcoming rate cut.
BTC is also forming a bullish megaphone on the higher timeframes. A breakout of this structure would mean that the largest cryptocurrency could reach six figures in this bull cycle.
New Meme coins such as Pepe Unchained are also in high demand
Bitcoin’s record high price will likely spark the next crypto bull run, leading to a sharp rally in altcoin prices.
Smart investors are prepared for this scenario and are buying new meme coins with high upside potential in large quantities. This is because during the bull run earlier this year, new low-cap meme coins made some small-time investors millionaires.
For example, a new meme coin – Pepe Unchained (PEPU) – Raised nearly $9 million in presale in just a few weeks.
Even popular crypto publications like CoinMarketCap, Techopedia, Binance Square, and Bitcoin.com are reporting on PEPU’s impressive pre-sale performance.
However, its astonishing demand is not surprising. Frog-themed meme coins tend to be in high demand, and Pepe Unchained’s native Layer-2 chain distinguishes it from other useless, run-of-the-mill tokens.
Indeed, PEPU can offer token holders low transaction costs and high staking rewards, something other Ethereum memecoins cannot boast.
Not surprisingly, savvy investors expect this new meme coin to see a lot of retail investment, with some even predicting returns of up to 50x.
Disclaimer: This article is for informational purposes only. It does not provide or is intended to be used as legal, tax, investment, financial or other advice.
