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Inflation Cools Down, US Stocks Soar, Crypto Community Awaits First Approval Window for Bitcoin Spot ETF

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Inflation Cools Down, US Stocks Soar, Crypto Community Awaits First Approval Window for Bitcoin Spot ETF

The U.S. reported yesterday that the October Consumer Price Index (CPI) remained unchanged, while economists had expected a 0.1% increase for the quarter. The U.S. stock market surged across the board, with the 10-year Treasury bond yield falling. Bitcoin and Ethereum saw slight declines, as the market awaits the Securities and Exchange Commission (SEC) for the next guidance on a Bitcoin spot exchange-traded fund (ETF).

US Inflation Data Cools Down

The US Department of Labor released the Consumer Price Index (CPI) for October yesterday, showing a year-on-year increase of 3.2%, down from 3.7% in September, marking a new low since July. The core CPI also decreased from 4.1% to 4%, below market expectations. The monthly increase remained flat at 0%, lower than the expected 0.1%. Coupled with the recent drop in oil prices, investors are once again expecting a cooling of inflation.

According to data from CME FedWatch, investors expect the Federal Reserve to maintain the interest rate at the meeting on 12/13 with a probability as high as 99.8%, and there is a chance of a rate cut cycle starting in May next year.

On the geopolitical front, US President Biden and Chinese President Xi Jinping are set to hold their first meeting in about a year in San Francisco.

First Approval Window for Bitcoin Spot ETF Approaching

Bloomberg ETF analyst James Seyffart once again reminded:

We are approaching the deadline for 3 Bitcoin spot ETF applications. We are likely to see delay orders from the SEC. But this does not change our view; we estimate a 90% chance of approval by January 10, 2024!

Bitcoin Spot ETF Update: November 17 is the first opportunity, with a 90% chance of approval by January next year