It was a sea of red in the cryptocurrency industry on Wednesday morning. JASMY price has dropped for three straight days and is down by over 23% from the highest point last week. Similarly, Uniswap price dived to below $9 while Notcoin has erased almost 50% of value from its all-time high. Other altcoins like Fetch.ai, ORDI, and Floki also dived.
US inflation data
The first key event that will affect the prices of Jasmy, Uniswap, Notcoin, and the majority of other digital assets will be the upcoming US consumer inflation data set for Wednesday morning.
Economists believe that the country’s inflation remained stubbornly high in May. The average estimate is that the headline Consumer Price Index (CPI) remained at 3.5% in May. The core CPI figure, which excludes the volatile food and energy products, is expected to come in at 3.6%.
US inflation has remained significantly above the Federal Reserve’s target of 2% in the past few months. This trend happened because of the rising services, medical, insurance, and housing prices.
The report will come out a few days after the US published mixed jobs numbers. According to the Bureau of Labor Statistics (BLS), the economy created over 272k jobs while wages rose by 4% during the month. On the negative side, the unemployment rate rose to 4.0%.
Federal Reserve decision
The next important catalyst for top altcoins like JasmyCoin (JASMY), Uniswap (UNI), and Notcoin (NOT) will be the Federal Reserve decision that will come out during the American session.
Economists believe that the Fed will decide to leave interest rates unchanged between 5.25% and 5.50%. The committee will also maintain the view that it will be data-dependent when determining when to start cutting interest rates.
This decision will come a day after Senator Elizabeth Warren sent a letter to the Fed asking it to slash interest rates. She noted that other central banks like the European Central Bank (ECB) and the Bank of Canada have started cutting rates.
Economists expect the Fed will start cutting rates in September if the country’s inflation continues to soften. It will then deliver another cut in December.
US inflation and Federal Reserve decisions have an impact on cryptocurrencies like Bitcoin, Jasmy, Bitcoin, and Hedera Hashgraph. In most cases, these tokens do well when the Federal Reserve is either dovish or when it is preparing to cut interest rates.
Indeed, the recent crash accelerated after the US published strong jobs numbers on Friday because they increased the possibility that the Fed will maintain rates higher for longer.
