Friday CPI Release Crucial for Crypto Amidst Government Shutdown

A significant event is set for this Friday, with the release of September's Consumer Price Index (CPI) data amidst a US government shutdown. The Bureau of Labor Statistics will publish the figures at 8:30 a.m. ET, marking an unusual occurrence as CPI is rarely released on a Friday, last happening in January 2018.

Key Points

  • The CPI release occurs five days before the Federal Open Market Committee (FOMC) meeting on October 28–29.
  • Crypto strategists are alert to any above-survey CPI print, which could significantly influence market sentiment.
  • Recent inflation trends show a rise, with August’s CPI up by 0.4% month-over-month and a year-over-year rate increase to 2.9% from July’s 2.7%.
  • The Fed's upcoming decision is anticipated to include a potential quarter-point rate cut, influenced heavily by the CPI data due to the current data blackout.
  • Crypto markets are sensitive to such macroeconomic indicators; improved liquidity expectations typically benefit large-cap tokens.
  • The total crypto market cap currently stands at $3.71 trillion.

Total crypto market cap

This CPI release is crucial for crypto investors, as it may impact the FOMC's decisions and thus influence market conditions and liquidity expectations.