October CPI Figures released by the Labor Department show that inflation is slowing in the US, even though rate hikes may not be over.
The Consumer Price Index (CPI) remained flat in October, better than economists’ expectations that the CPI would rise by 0.1%. Core CPI also came in lower than expected at 0.2%, over the 0.3% expected. The CPI measures a range of goods and services commonly used in an economy. However, core CPI does not include food and energy costs.
These figures show a slight improvement in US inflation data. The October CPI was also better than the 0.4% increase in September.
October’s core CPI was better than the expectation for October, and also the 0.3% recorded in September. Also, it was higher by 4.0% year over year (YoY), better than the 4.1% expected YoY, and in September.
Fed May Not Be Done Hiking Rates despite October CPI
The market has seen some respite regarding headline CPI inflation, which has been slowly reducing for a while. However, it is still not yet at the Federal Reserve’s 2% target. The figures indicate that the Federal Open Market Committee (FOMC) may not be completely done with increasing interest rates again. The Fed has previously suggested that it could effect one more hike before suspending the tightening cycle.
Market traders are pricing in the chance that the Fed will leave rates unchanged at the December meeting. According to the CME FedWatch Tool, pricing suggests only a 5.5% chance of a hike and a 94.5% chance that rates will remain unchanged. For the January meeting, the possibility of rates remaining stagnant is 90.8%, with a 5.3% chance of a hike. Interestingly, this leaves a 3.9% chance that the FOMC will ease rates. These figures rose immediately after the CPI figures were published. Before that, the market priced in an 86% chance of stagnant rates for December, and 75% in January.
Crypto and Traditional Markets React to CPI
The Nasdaq 100 futures gained 1.9% on the indication of positive inflation, while the S&P 500 futures rose 1.4% instead. The Dow Jones Industrial Average (DIJA) also jumped, by about 500 points. In addition, the 10-year Treasury yield fell to 4.476%, losing 16 basis points. According to Sit Fixed Income Advisors portfolio manager Bryce Doty, the Fed may have stopped its rate hikes and is “smart” for doing so:
“The Fed looks smart for effectively ending its tightening cycle as inflation continues to slow. Yields are down significantly as the last of investors not convinced the Fed is done are likely throwing in the towel.”
In the crypto market, there are barely any reactions to the CPI figures. For instance, Bitcoin is trading at nearly $35,600 after climbing more than 1% over the last 7 days. However, as of this writing, the king coin’s price has fallen about 3% over the past 24 hours. Interestingly, Ether (ETH) is seeing better 7-day improvement at 5.36%, even though it fell 3.78% on the last day, worse than Bitcoin. As the major coins struggle, others like Solana (SOL) and Polygon (MATIC) are doing much better, rising 33% and 25% respectively, over the last 7 days. Their 24-hour figures show gains of 6.32% and 2.47%, respectively.
For the fourth day after the hawkish Fed announced the hike of interest rates by 0.50%, the crypto market has been dumping. Withdrawals have been growing, but the dump was bigger today, where most cryptocurrencies declined by double digits in the past 24 hours.
Solana (SOL) and Cardano (ADA) are among the big players that have declined by double digits in the past 24 hours of this writing. This means Solana and Cardano have weakened their support by a massive percentage as of writing.
Solana (SOL) had also lost 11.85% in the past 24 hours as of writing to trade at $12.23, while Cardano (ADA) had declined 12.5% during the same period to trade at $0.2621. Therefore, both coins had lowered their support level by a significant percentage.
Looking at the strength of the bears this morning, Solana (SOL) and Cardano (ADA) support might even weaken today and this weekend. However, Bitgert (BRISE) is doing better than Solana (SOL) and Cardano (ADA).
Looking at the charts, Bitgert has maintained a stable support performance in a bearish market. But Bitgert has also been doing well this month and is projected to end the year bullish.
Why Bitgert Is Posting Better Support Performance
Unlike Solana (SOL) and Cardano (ADA), Bitgert (BRISE) has been bullish not only this December but this year as well. However, the recent developments are the reason Bitgert support is doing well in this bearish market.
The launch of the ‘zero trading fee’ Bitgert exchange and Paybrise are some of the reasons why $BRISE has been doing well in the market. In fact, the growing adoption of the products is some of the reasons Bitgert support has been stable today.
Bitgert stability is also driven by the growing hype, especially due to the game-changing developments coming from the roadmap V2. All these factors put together are making Bitgert a very attractive coin, hence the growing number of new investors even today.
Therefore, we can expect Bitgert (BRIE) to remain a better rewarding coin than Solana (SOL) and Cardano (ADA) this weekend.
Centcex (CENX) Is Also Stable
Centcex (CENX) is another coin that has been stable today, as Solana (SOL) and Cardano (ADA) plummeted. Centcex has been super explosive in 2022 and is also expected to outperform Cardano (ADA) and Solana (SOL) this month.
The price forecast for Centcex also shows a super rewarding coin in 2023, bigger than Solana (SOL), Cardano (ADA), and other big coins. Centcex has got disruptive developments coming up, which makes it a good buy today. It is a good coin to watch today over Cardano (ADA) and Solana (SOL).