• The January employment report from the U.S. Bureau of Labor Statistics has been released, revealing that inflation has fallen to 6.4%.
• JPMorgan Chase & Co.’s economic experts predicted a drop to 6.2% in January, while Morgan Stanley predicted a 0.4% gain when comparing the two numbers.
• Federal Reserve Chair Jerome Powell anticipates substantial decreases in inflation around the year 2023, which will likely affect Bitcoin and other cryptocurrencies prices.

Inflation Falls to 6.4% in January

The long-awaited January employment report from the U.S. Bureau of Labor Statistics has finally been issued and it revealed that inflation has fallen to 6.4%. JPMorgan Chase & Co.’s economic experts had previously predicted a drop to 6.2%, while Morgan Stanley predicted a 0.4% gain when comparing the two numbers – both estimates were exceeded by this result as stocks may suffer from readings higher than 6.4%.

Federal Reserve’s Reaction

This data set from the Bureau of Labor will be a major factor for Federal Reserve policymakers when considering interest rate hikes – investors anticipate two more increases from its current range of 4.5 percent to 4.7 percent over this year, although these actions are supposed to have a positive effect on the economy in the long run according to Federal Reserve Chair Jerome Powell who believes that inflation should decrease substantially by 2023 as he stated recently..

Impact on Cryptocurrency Markets

The news of lower inflation is expected to have an impact on cryptocurrency markets as well – prices for Bitcoin and most altcoins are trading in green following this announcement, suggesting investors consider this result favorable for crypto assets as well as stocks overall across all markets and sectors..

JPMorgan Chase & Co.

JPMorgan Chase & Co.’s economic experts have provided their predictions regarding inflation which differ slightly compared with those made by Morgan Stanley’s economists – however, they both expected some degree of moderation regarding inflation rates near the conclusion of 2020 which was confirmed by CPI data throughout December and now also with this most recent reading of 6%.

Conclusion

Overall, it seems that lower than expected inflation readings could provide some benefits for cryptocurrency traders and investors alike, allowing them more opportunities to take advantage of market trends due to reduced volatility caused by increasing interest rates or any other macroeconomic factors related directly or indirectly with inflation levels..