Markets
How will this influence crypto markets
A critical data release is imminent and could potentially significantly shake up the cryptocurrency market. This is not your average economic report: this information could mean the difference between skyrocketing profits and unexpected losses for your cryptocurrency holdings.
Is it time to celebrate or prepare for impact? Keep reading to find out!
1. US inflation indices: a brief introduction
U.S. inflation indexes measure changes in the prices of goods and services over time. They provide valuable data for understanding inflationary trends in the economy. These indices help policymakers, businesses and individuals assess the rate of inflation and its impact on purchasing power and overall economic stability.
2. The main inflation indices will be released soon
Here are the main inflation indices that will be released this month.
- Core inflation rate in the United States month-on-month
Measures monthly change in overall prices, excluding volatile food and energy costs, providing insight into underlying inflation trends.
- Core inflation rate in the United States over one year
Tracks year-over-year changes in core inflation, providing a long-term view of price stability, unaffected by short-term fluctuations in food and energy prices .
Reflects monthly changes in overall consumer prices, including food and energy, capturing short-term fluctuations in inflationary pressures.
Shows year-over-year changes in overall consumer prices, providing a broader perspective on inflation trends with long-term effects.
Measures the average change over time in the prices paid by urban consumers for a basket of goods and services, representing the overall cost of living.
Seasonally adjusted version of the CPI, removing the effects of seasonal variations, providing a clearer view of underlying inflation trends.
Tracks changes in prices received by producers for goods and services, serving as an indicator of inflationary pressures in the production process.
Measures the monthly change in producer prices, providing insight into short-term fluctuations in input costs for producers.
Shows monthly changes in producer prices, excluding volatile food and energy costs, providing a clearer picture of underlying inflationary pressures in production.
Tracks year-over-year changes in core producer prices, providing a long-term view of inflationary trends in the manufacturing sector, unaffected by short-term fluctuations.
3. Historical analysis of the main inflationary indices
Let’s do a historical analysis of each inflation index.
3.1. Core inflation rate in the United States over one month: historical analysis
At the start of the year, the core inflation rate in the United States was around 0.392%. It saw a decline in February, to 0.358%. In March, it increased slightly to 0.359%. The forecast is that it will be 0.3% this month.
3.2. Core inflation rate in the United States over one year: historical analysis
At the start of the year, the year-over-year core inflation rate in the United States was around 3.9%. In February, it fell to 3.8%. In March, it did not change, since it remained around 3.8%. It is forecast to fall further to 3.7%.
3.3. US inflation rate month-on-month: historical analysis
In January 2024, the US inflation rate was around 0.3%. It experienced a significant increase in February, going from 0.3% to 0.4%. In March, it showed no change, since it remained at the level of 0.4%. This month, this rate is expected to drop to 0.3%.
3.4. Inflation rate in the United States over one year: historical analysis
As of January 2024, the year-over-year US inflation rate was approximately 3.1%. It increased slightly to 3.2% in February. In March, it rose sharply to reach 3.5%. It is expected to remain at the 3.5% level this month as well.
3.5. US CPI: historical analysis
In January 2024, the US CPI was approximately 308.417 points. Since then, it has continued to grow. In February, it reached the mark of 310.326 points, and in March, it touched the level of 312.332 points. It is predicted to cross 313.9 points this month.
3.6. US CPI sa: historical analysis
In January 2024, the American CPI stood at nearly 309.685 points. Since then, the rate has continued to increase. In February, it crossed the mark of 311,064 points. In March, it reached the level of 312.23 points. The trend is expected to continue like this, pushing it to the 313.2 point mark.
3.7. American PPI: historical analysis
In January 2024, the US PPI was approximately 142.676 points. In February, it saw a big increase, when it quickly rose from 142,676 to 143,466. The trend continued also in March, when it touched the level of 143,687 points. It is predicted that no change in trend will occur and it will even reach the level of 143.9 points.
3.8. US PPI MoM: historical analysis
In January 2024, the US PPI MoM was almost 0.4%. In February, it increased sharply, to 0.6%. Conversely, in March, it experienced a sharp decline, going from 0.6% to 0.2%. It is also expected to remain in the 0.2% range this month.
3.9. US Core PPI MoM: historical analysis
In January 2024, the US Core PPI MoM reached 0.5%. Since then, it has continued to decrease. In February, it had returned to 0.3%. In March, it reached 0.2%, marking a sharp decline from its 0.5% range in January. It is expected that this month too it will remain within the 0.2% range.
3.10. Core PPI in the United States over one year: historical analysis
In January 2024, the year-over-year US core PPI index was almost 2%. Since then, it has continued to increase. In February, it reached the 2.1% range. In March, it reached 2.4%. This time it is expected to be around 2.4%.
4. US inflation indices revealing the future prospects of cryptos: a predictive analysis
Historical analysis of major inflationary indices in the United States provides valuable insights into the future prospects of the crypto market. Looking at trends:
- Core inflation rate in the United States over one month and over one year
Stable core inflation rates indicate economic stability. If the upcoming rates match predictions, this would likely maintain confidence in the crypto market. However, if rates were to fall, this could lead to a slight decrease in enthusiasm for cryptocurrencies as a hedge against inflation. Conversely, an increase could boost demand for cryptocurrencies, particularly as a hedge against inflation, which could push prices higher.
- US inflation rate over one month and over one year
Like core inflation, overall inflation rates are stable. If upcoming rates align with predictions, this would likely maintain confidence and stability in the crypto market. A decrease in inflation rates could have a slight dampening effect on crypto enthusiasm, while an increase could boost crypto’s appeal as a hedge against inflation, potentially increasing demand and prices .
Consistent growth in the consumer price index indicates healthy demand. If the upcoming CPI levels match the predictions, it would mean continued growth and stability in the crypto market. A decline in CPI levels could indicate an economic slowdown, leading to slight corrections in cryptocurrency prices. Conversely, an increase in CPI levels could strengthen the case for cryptocurrencies as a hedge against inflation, which could drive up demand and prices.
The mixed trend in the producer price index suggests economic uncertainty. If the next PPI levels match predictions, uncertainty in the crypto market could persist. A decrease in PPI levels could boost investor confidence in cryptocurrencies, leading to moderate price increases. Conversely, an increase in PPI levels could increase uncertainty, prompting cautious investments and potential shifts to more stable assets.
The stability of the core producer price index indicates confidence in economic fundamentals. If the next Core PPI levels align with predictions, it would likely boost confidence in the crypto market. A decrease in PPI base levels could ease inflationary pressures, leading to moderate adjustments in cryptocurrency prices. Conversely, an increase could raise concerns about inflationary risks, which could impact demand and prices for cryptocurrencies.
Endnote
The upcoming inflation data releases are poised to be a turning point for the cryptocurrency market.
Stable or expected trends in core inflation rates, headline inflation rates, consumer price indices and producer price indices are likely to maintain confidence and stability in the commodity market. cryptography. However, deviations from these forecasts could lead to adjustments in investor sentiment and potentially impact demand and prices in the crypto space.
Will they signal economic stability and build confidence in crypto, or will they spark uncertainty and price fluctuations? Stay tuned.
Also discover: Tether and RAK DAO join forces to boost Bitcoin and Stablecoin education in the UAE