Crypto Market Defies Inflation Data, Rising Despite Hawkish Stance
The latest inflation data has shaken up traditional financial logic, but surprisingly, the crypto market is bucking this trend. Despite expectations of a Federal Reserve rate hike, Bitcoin and other leading cryptocurrencies have shown resilience.
August's core CPI rose 0.3% month-on-month, exceeding economists' forecast of 0.2%, while headline inflation rose 0.4% month-on-month and 3.4% year-on-year.
This hawkish stance has become a market consensus, with Bank of America predicting the Fed will raise rates by 25 basis points next week and another 50 basis points before year-end.
However, unlike traditional risk assets, Bitcoin rose to $78,600 after the report was released, gaining 1.5% within 24 hours. Joel Kruger of LMAX Group noted that 'much of the risk from hawkish policy has already been priced in.'