Crypto markets traded lower over the weekend and into Monday after last week’s inflation data came in hotter than expected, dashing the hopes of investors who thought July’s CPI print might have indicated inflation had peaked.
The CME FedWatch Tool now indicates a 20% likelihood of a 100bps hike during Wednesday’s FOMC meeting — up from 0% just one week ago.
The total crypto market cap currently sits around $890 billion, after once again slipping below the $1 trillion dollar mark last week.
At the time of writing, bitcoin was trading at around $19,090, down over 16% since the CPI print. Meanwhile ether is trading at $1,343, down more than 23% over the same period.
A research note from Goldman Sachs indicates the bond market is also pricing in a 25% chance of a 100bps hike for Wednesday’s meeting, with analysts expecting “50bp hikes in November and December, taking the funds rate to 4-4.25% at year end.”
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Davis Quinton covers topics ranging from digital assets to financial markets as a Podcast Editorial Fellow at The Block. When the global pandemic disrupted his progression through law school in 2020, Davis discovered the digital asset space for the first time. Davis started at The Block in early 2022 and works closely with leaders across divisions to produce content for The Block’s flagship podcast, The Scoop. He previously held positions at Wells Fargo and Finsbury Glover Hering. He holds a degree in Social Research & Public Policy from New York University in Abu Dhabi.