While the annual inflation figure for June in the US was announced as 3.0%, this also significantly increased the markets’ expectations for September. The expectation for today’s inflation figure was 3.1%, but both headline and core CPI came in below market expectations, leading to a rally in many investment assets. Like headline inflation, core inflation was also down. 3.4% expected core inflation came in at 3.3%.

September expectation was 81.3%…

Markets started to wait for September for the Fed to cut interest rates for the first time since March 2020. According to the “CME FedWatch Tool”, which is followed by analysts and economists to predict interest rates in the short term, the September rate cut expectation is currently around 81.3%. Powell’s statement “We will continue to be data-driven” at the Congressional hearings, especially in the last 2 days, played an important role in the rise in this expectation. As it is known, since there is no Fed meeting in August, there will be no interest rate decision.

US financial institution Citi also stated in a report published this week that it expects 8 interest rate cuts in September and beyond. Citi expects a total of 200 basis points until July 2025, with each cut of 25 basis points.

Well, Bitcoin has risen but…

The good inflation figures did not bring the expected reaction in Bitcoin. Bitcoin, which rose above $59,000 in the first place with the announcement of the figures, then fell again as the German government moved more than 3 thousand BTC. The largest cryptocurrency is priced around $58,300 at the time of writing.