Grayscale Says U.S. CPI Could Be Short-Term Speed Bump for Crypto Market
Summary
- Zach Pandl, Grayscale's head of research, said the rise in the U.S. August CPI could weigh on the cryptocurrency market in the short term.
- Pandl said a higher CPI means the likelihood of a Federal Reserve rate hike has increased and could act as a speed bump for the crypto market.
- He said the market's decline is unlikely to be steep, adding that for investors who missed the August price surge, a correction could provide a new entry opportunity.
Forecast Trend Report by Period
U.S. consumer prices rose in line with market expectations in August, but Zach Pandl, Grayscale's head of research, said inflation could still weigh on the cryptocurrency market in the short term.
On September 11, Pandl wrote on X, formerly Twitter, that a high CPI reading implies a greater likelihood of Federal Reserve rate hikes. He said that could act as a speed bump for the crypto market.
Still, Pandl said any market decline is unlikely to be steep. He added that for investors who missed the August price surge, a correction could present a new entry opportunity.
The U.S. Labor Department said August CPI rose 3.4% from a year earlier and 0.4% from the previous month. Both figures matched market expectations.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.