Here's How Much Bitcoin, XRP, Ether, Solana May Move on Friday's Inflation Report

Core Inflation and Fed Policy - The core PCE likely rose 2.9% year-on-year in September, moving away from the Fed's target of a 2% annual rate, marking 55 consecutive months above the target [2] - Persistent inflation is expected to strengthen the position of Fed hawks who advocate for slower rate cuts [2] Market Volatility and Expectations - Volatility indices, such as the bitcoin implied volatility index (BVIV), remain stable around 36%, indicating a 24-hour expected price swing of 1.88%, suggesting low volatility expectations [3] - Anticipated Fed rate cuts next week are likely influencing the low volatility, with a 25 basis point cut on December 10 priced in as a certainty [3] Impact on Cryptocurrency - A softer-than-expected PCE report could lead to a decline in the 10-year Treasury yield below 4%, potentially allowing Bitcoin (BTC) to break out of its recent trading range of $92,000-$94,000 [4] - Analysts suggest that a contained PCE and softer labor data would support a rebound in cryptocurrencies, while any upside surprise may keep markets range-bound until the Fed's direction is clarified [4] Alternative Cryptocurrencies Volatility - Analysts at ING caution that any decline in benchmark yields may be temporary, with similar impacts expected on alternative cryptocurrencies [5] - Ether's one-day implied volatility index stands at 57.23%, indicating a 24-hour price swing of 3%, while SOL and XRP show volatility indices suggesting price moves of 3.86% and 4.3%, respectively [5]