Bitcoin, copper, stocks, yields all fall; gold rises

“It feels more like a stagflationary environment where risk assets and the US dollar generally underperform, while gold outperforms,” InvestingLive analyst Giuseppe Dellamotta wrote in a market update.

Concerns the Fed will raise interest rates have been cited as one catalyst after Wednesday’s hotter-than-expected U.S. CPI report. But that concern appears to be fading.

CME fed funds futures now price in only a 29% chance of the central bank hiking its benchmark rate into the 4%–4.25% range later this month. The remaining probability is for rates to stay unchanged at 3.75%–4%. Odds briefly approached 50% after the CPI print, but quickly scaled back.

Looking ahead, Thursday’s producer price index will offer another read on how much inflation remains in the pipeline. A hot number could add fuel to the risk-off mood.

Traders will also watch the AI trade and whether it continues to unwind. Analysts at 10x Research still prefer holding bitcoin while that unwind plays out, but only as long as BTC holds above $78,000. Further, they prefer to “use ether as a hedge for BTC long positions.”

Stay alert!

Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."