Equities Rally, Crypto Cautious On CPI

Asia equities lifted by rate-cut hopes

Asian equities rallied strongly as investors grew confident that the U.S. Federal Reserve will move closer to cutting interest rates. The optimism followed a disappointing U.S. jobs report in August, which showed only 22,000 jobs added, far below expectations. This weaker-than-expected labor data reinforced the view that the Fed has room to loosen monetary policy.

Bitcoin and Ethereum stay range-bound

Despite the bullish mood in equities, the crypto market showed restraint. Bitcoin remained stable above $111,600, while Ethereum traded near $4,300. Traders are cautious, preferring to wait for the U.S. Consumer Price Index (CPI) report before making major moves. This highlights how sensitive the crypto market remains to macroeconomic signals.

Source: polymarket.com

Inflation data as the next catalyst

The upcoming U.S. CPI report is expected to be the key driver for near-term market direction. A softer CPI reading could fuel stronger bets on rate cuts, potentially boosting risk assets. However, a hotter-than-expected inflation print might dampen sentiment and keep crypto under pressure.

Gold strengthens as safe-haven demand grows

Alongside equities, gold prices rose as investors looked for hedges against inflation and potential market volatility. The precious metal’s strength contrasts with crypto’s hesitation, underscoring the different investor behaviors in traditional versus digital assets.

Outlook: Wait-and-see mode for Crypto

Institutional adoption and regulatory clarity continue to support the long-term case for digital assets. Still, short-term price action hinges on economic data. Until the CPI report is released, crypto markets are likely to remain cautious, trading within narrow ranges while equities enjoy rate-cut optimism.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.