Inflation data last week has caused crypto markets to trade lower. Participants in the market weigh the possibility of a Fed rate hike of 100bps on Wednesday.
Over the weekend, crypto markets fell after the inflation data for last week came in hotter than expected . This shattered investors’ hopes that July’s CPI print might have indicated high inflation.
Markets fear a huge interest rate hike of 100bps by the FED on wednesday
CME FedWatch Tool now indicates that there is a 20% chance of a 100bps increase during Wednesday’s FOMC meeting. This is up from 0% a week ago.
According to Goldman Sachs research, the bond market also expects a 25 percent chance of a 100bps increase for Wednesday’s meeting. Analysts are expecting 50bp increases in November and December, which would bring the funds rate up to 4-4.25% by year end.