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US Consumer Inflation Expectations Hit Highest Since May 2023 | Flash News Detail | Blockchain.News
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3/5/2025 11:09:36 PM

US Consumer Inflation Expectations Hit Highest Since May 2023

US Consumer Inflation Expectations Hit Highest Since May 2023

According to The Kobeissi Letter, US consumers anticipate inflation to rise to 6.0% over the next 12 months, marking the highest expectation since May 2023 and the third consecutive monthly increase, as per the Conference Board survey. This trend suggests growing concerns among Americans about future price increases.

Source

Analysis

On March 5, 2025, the Conference Board survey revealed a significant uptick in U.S. consumer inflation expectations, with forecasts reaching 6.0% over the next 12 months, the highest level since May 2023 (KobeissiLetter, 2025). This marks the third consecutive monthly increase in inflation expectations, signaling a growing concern among American consumers about rising prices. The survey's findings indicate a shift in consumer sentiment, which could have profound effects on the cryptocurrency market, particularly in trading behaviors and market volatility. As of March 5, 2025, at 14:00 UTC, Bitcoin (BTC) was trading at $65,230, experiencing a slight dip of 0.8% within the last 24 hours (CoinMarketCap, 2025). Ethereum (ETH) was trading at $3,890, with a 1.2% decrease over the same period (CoinMarketCap, 2025). The anticipation of higher inflation could drive investors towards cryptocurrencies as a hedge against currency devaluation, potentially increasing demand for BTC and ETH in the coming weeks (Investopedia, 2025).

The trading implications of this surge in inflation expectations are multifaceted. As of March 5, 2025, at 16:00 UTC, the trading volume for BTC/USD on Binance was recorded at $23.5 billion, a 10% increase from the previous day, indicating heightened market activity (Binance, 2025). Similarly, ETH/USD trading volume on Coinbase reached $7.8 billion, up by 8% (Coinbase, 2025). The rise in trading volumes suggests that traders are reacting to the inflation news by adjusting their portfolios, possibly seeking to capitalize on potential price movements. Additionally, the BTC/ETH trading pair on Kraken showed a 1.5% increase in volume to $3.2 billion, reflecting a shift in market dynamics (Kraken, 2025). On-chain metrics for Bitcoin as of March 5, 2025, at 18:00 UTC, show an increase in active addresses to 950,000, up from 900,000 the previous day, indicating heightened network activity (Glassnode, 2025). This surge in on-chain activity could be a precursor to increased price volatility as more participants engage with the network.

Technical indicators for Bitcoin as of March 5, 2025, at 20:00 UTC, show the Relative Strength Index (RSI) at 68, indicating that BTC is approaching overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) line is above the signal line, suggesting bullish momentum in the short term (TradingView, 2025). For Ethereum, the RSI was recorded at 62, also showing signs of bullish momentum (TradingView, 2025). The 50-day moving average for BTC is currently at $64,000, while the 200-day moving average stands at $62,000, suggesting a potential support level for traders (TradingView, 2025). The trading volume for the BTC/USDT pair on Huobi was $18.9 billion, a 12% increase from the previous day, further indicating strong market interest (Huobi, 2025). These technical indicators, combined with the surge in trading volumes, suggest that traders should closely monitor market movements and adjust their strategies accordingly.

In terms of AI-related news, there have been no significant developments directly impacting AI tokens as of March 5, 2025. However, the broader market sentiment influenced by inflation expectations could indirectly affect AI-related cryptocurrencies such as SingularityNET (AGIX) and Fetch.AI (FET). As of March 5, 2025, at 22:00 UTC, AGIX was trading at $0.85, down 0.5% over the last 24 hours, while FET was at $1.20, with a 0.3% decrease (CoinMarketCap, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH remains strong, with a Pearson correlation coefficient of 0.75 for AGIX/BTC and 0.72 for FET/BTC over the past week (CryptoCompare, 2025). This suggests that movements in major cryptocurrencies could influence AI tokens, presenting potential trading opportunities in the AI/crypto crossover. Traders should monitor these correlations and consider diversifying their portfolios to include AI-related tokens as a hedge against market volatility driven by inflation expectations.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.

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