- The US inflation rate is below its 8.7% estimation.
- Many are relieved to see this, especially those hoping for a crypto market surge.
- The crypto community is convinced that a crypto price surge is on its way.
Crypto community justifies how the fallen US inflation rate will boost crypto activity. The community claims that since the US inflation rate has come back to below estimate, crypto investing and trading will be on the rise again.
Recently, the US CPI announced that its inflation rate fell from a high of 9.1% in June to 8.5% in July. This is especially significant because it falls below the estimates of 8.7%. With this newly lowered inflation rate, the community says that markets will likely begin to rally.
In detail, the discussion took place on Reddit on the CryptoCurrency thread. One user in particular, shares their hypothesis on the matter. To highlight, they say that with lower inflation rates, it is crucial for crypto to continue its rally and expand further as the months go by. The user then encourages readers to check out their scenario from an older post about an inflation rate below the 8.7% estimate.
More importantly, the user says that the FED will have zero argument to do a 100bps hike and should be looking at a 50bps hike next month. In turn, the user says, the market should see even more pump since the FED will likely pivot.
Adding on, the user says it is hard to say if US inflation has peaked but it is likely that the US government will market it as such as the country heads into its Midterm elections. In conclusion, the user says that crypto will have less moving forward from the FED. In fact, the user adds that a reversal, for now, could be possible.
In response, the thread got varying replies. One stands out as they say it is still a harsh time as 8.5% is still a high number for inflation rate. All in all, many are relieved to see a number below the 8.7% estimation.
