After the US Inflation Data, Bitcoin and Altcoins are in Search of Direction According to QCP! - Coin Bulletin

In the US, the critically important inflation figure (CPI) was announced as %2.8, slightly below market expectations, which could shape interest rate cut expectations.

The markets have been awaiting the Consumer Price Index (CPI) data to be announced by the US for a long time. Expectations were for inflation to come in at 2.9% annually, but the reported data came in at 2.8%. This slight deviation could trigger new debates regarding the Fed interest rate cut expectations, which the markets have aggressively priced in recently. Market players, who were expecting only one interest rate cut at the beginning of the year, have raised this expectation to four cuts in recent weeks.

Before the data was released, QCP Capital noted that volatility had increased significantly, with the VIX index reaching 28, a market stress indicator, before falling to 26.6. Additionally, it was recorded that the Cboe VIX futures curve reversing indicated a potential temporary bottom forming in the markets (backwardation).

While the inflation remaining slightly below expectations may cause a short-term relief in the markets, the re-escalation of trade wars continues to unsettle investors. The new additional customs duties of 25% imposed by the US on imported steel and aluminum came into effect today. In response, the European Union announced that it will activate its countermeasures worth 26 billion euros next month.

Crypto investors on alert

Tense wait continues in the cryptocurrency markets alongside traditional markets. The U.S. Securities and Exchange Commission SEC, extended the evaluation process of XRP, SOL, LTC, ADA, and DOGE ETF applications until May. SEC, while preparing for a high-level meeting on crypto regulations on March 21, saw a net outflow of $153.87 million from Bitcoin (BTC) ETF products. The largest contribution to this outflow was made by Grayscale Bitcoin Trust (GBTC), with a sale of 641 BTC.