Falling Inflation Expectations help Crypto to outperform!
Hi HODLers and Hiveans,
U.S. consumer inflation expectations came in as 5% for December, versus expectations of 5.2%.
The 5% reading marks the second consecutive month of declines, and the lowest reading since July of 2021.
Bitcoin and ether prices continue to be impacted by Federal Reserve actions to slow inflation.
As you can see in the Dot Graph below, monetary policy should peak in 2023 and rates should be lower from 2024.
This is of course if inflations continues to lower and if inflation expectation from consumers do not go too high.
If cost shocks and supply disruptions keep inflation elevated for a long enough period, households’ and firms’ inflation expectations could move higher – a development that could put additional upward pressure on inflation.”
Low inflation = lower interest rates = higher crypto prices!
This is the magic formula but nothing is sure for now. Also, a tougher recession than expected could hurt all asset prices including cryptocurrencies.
Stay safe out there, volatility is here to stay!
Latest articles
Leave Falling Inflation Expectations help Crypto to outperform! to:
Best Posts From Mr. Crypto Lemon 🍋
We have not curated any of vlemon's posts yet. But you can encourage our curation team to review posts by visiting them regularly and by referring other readers. Because we give priority to frequently read content.
More Posts From Mr. Crypto Lemon 🍋
- February Hive Power-Up Day!
- I will vote NO on the Electronic Arts Takeover!
- Battlefield 6 is EA's biggest recent success!
- October LPUD!
- October Hive Power-Up Day
- Government Shutdown looks inevitable! How to profit from it?
- South Park making fun of Prediction Markets means they are now mainstream!
- This isn't the DotCom Bubble yet!
- Everyone wants a piece of TikTok, US #1 Social Media App
- Kalshi vs Polymarket: The Prediction Market War!