Can This Rally Survive the CPI This Week? 

The Consumer Price Index (CPI) is a measure of the average price of a basket of goods and services consumed by households. It is one of the most widely used indicators of inflation, as it reflects the changes in the cost of living over time. On Thursday this week, the US Bureau of Labor Statistics will release its latest CPI report, with the consensus target of 0% inflation growth over the last month, and 6.6% year-over-year, compared to last month’s 7.1% figure.

The release of the CPI report has had a significant impact on the cryptocurrency market, as investors and traders try to gauge the potential impact of rising inflation on the value of their assets. Many cryptocurrencies, such as Bitcoin and Ethereum, are seen as a hedge against inflation, as their supply is limited and they are not subject to the same centralized control as traditional fiat currencies. 

If the CPI comes in ANYTHING above the flat 0% month-month number, expect to see a negative reaction across all risk assets, including Crypto. 

In addition, the financial markets have to endure more “FedSpeak” this week via Jerome Powell and his supporting cast. Powell speaks tomorrow morning at 0900A ET, and there are several other talks scheduled by other Fed Presidents on Thursday and Friday, directly before a holiday weekend. 

Risk markets will have to respond to this number, which has been softening lately, but progress to consumer inflation has to be seen for the Fed to take their foot off the gas and stop the rate hikes before they crash the larger economy.