Key Points
- Wall Street analysts are expressing optimism and bullishness when it comes to the cryptocurrency and stock markets.
- The US Consumer Price Index (CPI) inflation rate experienced a notable decline in May, dropping to 4.1%. This marks the lowest level since March 2021, indicating a potential stabilization in the overall price levels.
- The core inflation rate, which excludes volatile food and energy prices, also witnessed a decline from 5.5% to 5.3%.
- Estimates for the CPI rate going forward range from 4.1% to 4.2%, which suggests that analysts expect inflation to remain relatively subdued in the coming months.
Wall Street analysts have developed a positive outlook on the cryptocurrency and stock markets, as estimates for the US Consumer Price Index (CPI) inflation and the US Federal Reserve’s interest rate decision are quite positive. Following a recent downturn in the crypto market, leading cryptocurrencies such as Bitcoin and Ethereum are expected to experience a sharp recovery.
Major Financial Firms Predict Inflation Rate
The latest data from the US Bureau of Labor Statistics reveals a decrease in the annual CPI inflation rate, which dropped to 4.1% in May compared to 4.9% in April and 5% in March. This marks the lowest CPI inflation rate observed since March 2021. Similarly, core inflation, which excludes volatile food and energy prices, also experienced a decline from 5.5% to 5.3%.
According to estimates from major Wall Street firms, there is a range of predictions for the US Consumer Price Index (CPI) rate. JP Morgan, Goldman Sachs, and RBC project the CPI rate to be around 4.2%. On the other hand, HSBC, BMO, and UBS estimate that the CPI will be close to 4.1%. Meanwhile, Barclays, Bloomberg, CIBC, Citigroup, Credit Suisse, Morgan Stanley, Visa, and Wells Fargo are more optimistic, as they predict that the CPI inflation will further go down to 4%.
Good Morning Everyone! CPI inflation for May comes out at 830am. Here are Wall Street estimates:
— Genevieve Roch-Decter, CFA (@GRDecter) June 13, 2023
GOLDMAN SACHS: 4.2%
UBS: 4.1%
MORGAN STANLEY: 4%
JP MORGAN: 4.2%
BARCLAYS: 4%
VISA: 4%
BLOOMBERG: 4%
ME: Still too damn high
Important Events on the Way
These varied estimates from prominent financial institutions highlight the uncertainty surrounding the future of CPI inflation in the United States with some expecting a slightly higher rate of inflation and others expecting a continued decrease.
Financial analysts predict that inflation rates in the United States will likely decrease significantly in the next few months. This is causing investors to get ready for an important week ahead, which includes the much-awaited decision on the country’s monetary policy by the US Fed. These factors are expected to attract a lot of attention from the market and may lead to increased uncertainty as investors closely watch the outcomes and effects of these crucial events.
Many Factors Responsible for Crypto Rise
Bitcoin and Ethereum, the top cryptocurrencies in the market, are expected to experience a rise in price which will be driven by macro factors. In the past 24 hours, the price of Bitcoin has risen by 1%, and Ethereum and other alternative coins have also shot up.
Several key events taking place today are likely to impact cryptocurrency prices. These events include a US House hearing focused on the digital asset industry and the introduction of a draft stablecoin bill. Additionally, the release of the Hinman documents, the Securities and Exchange Commission’s (SEC) response to Coinbase’s rulemaking, and the Binance.US hearing regarding asset freezes are also expected to influence the market prices.
End Note
Wall Street is optimistic as US CPI inflation drops to 4.1%, boosting confidence in the cryptocurrency and stock markets. Bitcoin and Ethereum are expected to rebound, while investors closely watch the Federal Reserve’s monetary policy decision and key events impacting cryptocurrency prices.
