Bitcoin yesterday was showing signs of strength - now today it’s BLASTING OFF! Finally getting out of it’s month long correction, we’ve seen the first solid reversal in price since August 14th, with price sitting at a comfortable $116K now and climbing. Gold had a day of mostly sideway price action, closing for the day at $3,634, whilst the Risk-on markets soaked up all the good news from the CPI data overnight. Silver however continued to close the day out in the green again at $41.56, and seems to be accumulating upwards in price now - further positioning Silver as a precious metals “Catch-up” play, after the already monstrous Gold rally we’ve seen all year long.
The Consumer Price Index (CPI) for all items rose 0.4% month-over-month in August (seasonally adjusted), up from 0.2% in July. Whilst this might’ve initially been cause for concern to a projected doveish FED, the year-over-year data came in as forecasted at 2.9%, therefore giving markets the certainty that inflation data whilst being somewhat-sticky isn’t worse than expected. This data-delivery at forecasted levels is all the markets needed to soar overnight and feel comfortable that the FED will in-fact deliver at least a 25 basis-point rate cut come next week with odds of this sitting at juicy 92.7% currently.
As markets now almost certainly expect the Federal Reserve to deliver a rate cut at its upcoming meeting, with 25 basis points seen as the likely outcome - The FED will likely monitor inflation closely over the coming months to ensure they are moderately easing whilst being mindful of a weakening U.S. job market. The is a strong signal to Risk-on markets that the short-term bullish momentum is back on the table, with U.S. Indices getting pumps and daily breakouts of their respective ranges shooting up with green daily closes. The S&P500 closed for the day at an all-time-high of 6,588, meanwhile the NASDAQ also saw it’s highest close at 23,989.
Bitcoin Bulls didn’t hold back overnight and saw us finally confirm a reversal of the month-long rut it’d been stuck in. Certainty around the inflation data coming in was enough to confirm a bullish reversal back to the upside, smashing past the $113K resistance zone. This has comfortably landed us at $116K at current point in time of writing, and likely to continue higher from here now as we inch closer to the FED’s monetary policy decision next week.
Stormrake Spotlight: Hedera (HBAR) ($0.241)
