Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released a new Bybit x FXStreet TradFi, highlighting why this week’s U.S. inflation data could be a pivotal moment for global markets.
The joint report examines the upcoming release of the Producer Price Index (PPI) on September 11 and the Consumer Price Index (CPI) on September 12, both of which are expected to play a decisive role in shaping the Federal Reserve’s interest rate decision on September 17, 2025.
Fed in Focus: Markets are currently pricing in a 92% probability of a rate cut from 4.5% to 4.25%, according to CME FedWatch data. Softer inflation readings could further strengthen expectations of additional cuts later this year.
Bitcoin at a Crossroads: BTC remains below its all-time high of $124,500 reached in August. A softer CPI could propel Bitcoin past $120,000 and potentially toward $135,000 by year end, while hotter-than-expected data could trigger a correction below $107,200.
Equities Rally: The S&P 500 is holding above 6,500, with the potential to target 7,000 if inflation data eases and rate cut expectations firm up.
Cross-Asset Volatility: Inflation figures will directly impact risk assets, including cryptocurrencies, gold, silver, and growth equities, setting up traders for two critical trading windows this week.
The report underscores that falling inflation would give the Fed more flexibility to ease monetary policy, boosting liquidity across asset classes. Conversely, stronger-than-expected inflation would likely force policymakers to remain cautious, restraining rallies in both traditional and digital markets.
The full Bybit x FXStreet TradFi Report is available now on Bybit’s official platform, providing traders with in-depth analysis, technical insights, and actionable strategies to navigate one of the most important weeks for global markets this year.
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