QCP Capital's Analysis of CPI Data and its Impact on Crypto

QCP Capital published a post stating that the US CPI data released last night met expectations. Core CPI rose slightly month-over-month to 0.3%, exceeding the expected 0.2%. This has increased the likelihood of the Fed cutting interest rates by 25 basis points to 85%, the highest level in a month.

In terms of cryptocurrencies, BTC rebounded from its intraday decline, reclaiming $57,000, indicating strong demand and an increasingly bullish outlook. This is reflected in options activity, with growing demand for call options expiring between October and December.

Driven by the CPI release and the Presidential debate, BTC volatility dropped 12 points this week. With no significant macroeconomic events on the horizon, volatility is expected to decline further before the FOMC meeting next week.