Impact of Friday's Inflation Report on BTC, ETH, SOL, and XRP Price Movements
The Core PCE inflation metric likely rose 2.9% year-over-year in September, surpassing the Federal Reserve's 2% target for the 55th consecutive month. A softer inflation reading could lead to a decline in the 10-year Treasury yield, which in turn may support a rebound in cryptocurrency prices.
Bitcoin's implied volatility index (BVIV) is currently around 36%, indicating an expected 24-hour price move of approximately 1.88%. This level of volatility is considered stable. Bitcoin's trading range is referenced between $92,000 and $94,000; a softer inflation report could push the price above this range if yields decrease.
Ether's implied volatility stands at about 57.23%, implying roughly a 3% daily price movement. Solana shows an implied volatility near 3.86%, while XRP's is around 4.3%, reflecting expected daily price moves in these ranges.
The CME FedWatch tool prices in a 25 basis point rate cut by the Federal Reserve on December 10, which could influence Treasury yields and market sentiment toward cryptocurrencies.
