Bitget Research Institute: The fall in U.S. inflation will help the Federal Reserve end tightening, and risk assets will benefit

U.S. CPI fell short of market expectations in October. Specifically, CPI was 0% month-on-month, lower than market expectations of 0.1%; core CPI was 0.2% month-on-month, lower than market expectations of 0.3%; CPI increased by 3.2% year-on-year, lower than market expectations of 3.3%; core CPI was 4.0% year-on-year, lower than market expectations 4.1%. With the CPI data falling and the U.S. economy beginning to weaken, the market expects the Federal Reserve's monetary policy to turn around and end its tightening monetary policy ahead of schedule. According to CME data, the probability of the Federal Reserve raising interest rates by 25 basis points in December has been reduced to 0.2%. In December next year, the market expects the federal base interest rate to fall to a range of 4.25%-4.5%. The market expects the Federal Reserve to cut interest rates by 100 basis points by December next year. Bitget Research Institute analyzed that the macro monetary policy environment of interest rate cuts means that more funds will appear in the market in the future, which is a major benefit for risk assets. It is expected that the supply of stablecoins in the cryptocurrency market will exceed previous highs in the future.