#USMayPCEInflationRisesTo4.1%HighestIn3Years 📊 4.1% Inflation. Macro Risk Is Back on Every Trader’s Screen

Inflation in the United States might go up to 4.1% in May, which's the highest it has been in three years. This could be a deal for the market even if a lot of traders do not think so.

This is not some ordinary news about the economy.

For people who trade crypto inflation affects how much money is available how much risk people are willing to take and how people feel about the market.. One thing that markets really do not like is being unsure about interest rates.

If inflation is higher than people thought it would be it could be very bad for things that are considered risky.

Why is that? Because higher inflation means the Fed is more likely to keep being tough. This usually means there is money available and crypto is affected by this very quickly. People who have borrowed money to trade get into trouble the market gets very volatile. People who are not very confident start to panic.

That is what could happen if things go badly.

I am being careful instead of just thinking things will go badly.

Markets are based on what people think will happen not on the news.

If traders are already prepared for news about inflation it might not be as bad as people think. Sometimes the biggest change happens when things are not as bad as people feared.

That is why I am paying attention to how the market reacts after the news comes out.

Does the price of Bitcoin go below what it was before?

Do people who buy Bitcoin absorb the selling?

Does the feeling about risk change to normal quickly?

Those are the things that matter not the news.

If things go well inflation might go down in the coming months. This will just be a small problem.

If things go badly inflation that does not go down could mean that the Fed does not help the economy much and that could slow down the next big increase in crypto.

What I think is that this is a time when the market will be very volatile. It is not a time to make emotional decisions.

Being patient is usually better, than panicking when big things are happening in the economy.

What do you think. Will high inflation make the price of crypto go down more or is the bad news already included in the price?

#GateSquare #Inflation #crypto.