Bitget Research Institute: The decline in U.S. inflation is beneficial for the Federal Reserve to end tightening, and risk assets will benefit

ChainCatcher news, October's US CPI did not meet market expectations. Specifically, the CPI month-on-month is 0%, below the market expectation of 0.1%; the core CPI month-on-month is 0.2%, below the market expectation of 0.3%; the CPI year-on-year rose by 3.2%, below the market expectation of 3.3%; the core CPI year-on-year is 4.0%, below the market expectation of 4.1%.

With the CPI data declining and the US economy beginning to show signs of weakness, the market expects a shift in the Federal Reserve's monetary policy, anticipating an early end to the tightening of monetary policy. According to CME data, the probability of a 25 basis point rate hike by the Federal Reserve in December has dropped to 0.2%. By December next year, the market expects the federal funds rate to fall to a range of 4.25%-4.5%. The market anticipates that by December next year, the Federal Reserve will cut rates by 100 basis points.

The macro monetary policy environment of rate cuts means that more funds will be available in the market in the future, which is a significant boon for risk assets. It is expected that the supply of stablecoins in the cryptocurrency market will surpass previous highs.