In the US, data on inflation and consumer expectations has been released - what does this mean.

In the US, data on inflation and consumer expectations has been released - what does this mean for the economy, the Fed's policies, and the crypto market? In our review of BTC, we already mentioned that the data was positive. The market showed a rebound, but, as expected, this turned out to be a short squeeze and now the price is testing $89,000, and our short is in profit by +44%.

For #BTC, it is worth watching for reversal signals like Strong signal potential lows on the hourly timeframe. For now, the price may continue to go down. Watch for support levels at the lows of November 21 and December 1. In the scenario of breaking the range of $88,000-$90,000. It is currently passing at an additional target of the downtrend - $85,202.

What data has been released and what does it mean? First, to the numbers:

- Consumer Price Index for Personal Consumption Expenditures (m/m) (September): 0.3% with a forecast of 0.3% and a previous figure of 0.3%.

- Consumer Price Index for Personal Consumption Expenditures (y/y) (September): 2.8% with a forecast of 2.8% and a previous figure of 2.7%.

- Core Consumer Price Index for Personal Consumption Expenditures (m/m) (September): 0.2% with a forecast of 0.2% and a previous figure of 0.2%.

- Core Consumer Price Index for Personal Consumption Expenditures (y/y) (September): 2.8% with a forecast of 2.9% and a previous figure of 2.9%.

- Expected Inflation from the University of Michigan (December): 4.1% with a forecast of 4.5% and a previous figure of 4.5%.

- U.S. Consumer Inflation Expectations Index for 5 years ahead from the University of Michigan (December): 3.2% with a forecast of 3.4% and a previous figure of 3.4%.

- Consumer Expectations Index from the University of Michigan (December): 55.0 with a forecast of 52.0 and a previous figure of 51.0.

- Consumer Sentiment Index from the University of Michigan (December): 53.3 with a previous figure of 51.0.

- Personal Spending (m/m) (September): 0.3% with a forecast of 0.3% and a previous figure of 0.5%.

CONCLUSIONS:

- Inflation continues to slow down, albeit slowly. The dynamics align with the trend of previous months - a steady, albeit not without rebounds, cooling of price pressure. This time the Core Index showed a pause on m/m and a rise of 0.1 percentage points y/y. The Core Index also showed a pause on m/m but a decrease of 0.1 percentage points y/y.

- There is a decrease in long-term inflation expectations among consumers. This is an important factor for stabilizing the economy. It reduces the risk that high inflation will become "entrenched" in consumer behavior.

- Regarding the Consumer Sentiment Index - the consumer remains resilient, which should support economic activity despite still high Fed rates.

- Current data does not create prerequisites for a sharp upward impulse but forms a stable platform for future market recovery.

- For BTC and major altcoins, the main driver is expectations for a rate decrease. Today's numbers strengthen these expectations. It is worth reminding that historically, the cryptocurrency market often starts moving before traditional markets as confidence in monetary policy easing builds.

- Overall, it can be said that the statistics are positive. They support a "soft landing" for the economy and give markets more room for growth.

For the Fed, the situation here is somewhat mixed. The slowdown in inflation, although contradictory, is more likely to support a softer rhetoric from the regulator. However, overall positive consumer reactions to the economic situation are a factor that will support the stock and cryptocurrency markets in the long run. The Fed considers the Michigan survey data, as Powell himself acknowledged.