The S&P 500, Dow Jones Industrial Average and Nasdaq recently fell 0.4%, 0.2%, and 1.17%, respectively. Investors appear to be spooked by disappointing earnings over the past two days. The price of gold rose by 0.31% while crude oil declined 0.14%. Macroeconomic news was light while market participants anxiously await the results of Wednesday’s release of inflation data.

The consensus of expectations is for an 8.7% year-over-year increase in the CPI. Alternative currencies (altcoins) tumbled, with EOS and XLM dropping 7% and 9%, respectively. Bitcoin, ether and gold prices are taken at approximately 4pm New York time.

Markets Pausing Ahead of CPI Report, Bitcoin Declines. Markets on Tuesday were focusing on release of the July CPI, which will show whether ongoing efforts to reduce inflation are working. The broad sell-off of stocks and crypto across traditional and digital markets suggests traders were looking to reduce risk ahead of the report.

The CME FedWatch tool now shows a 70% probability of another 75 basis point rate increase. The two-year U.S. Treasury note continues to exceed that of the 10-year Treasury. Should the inflation rate fall below forecasts, the prospects for a rate increase will likely decline.

BTC fell below its trendline on Tuesday. It will be important for traders to see if it reclaims the trendline. Should bitcoin fail to reclaim the trend, it appears to be positioned to trade in a range rather than taking a significant downturn. Currently the spread implies that traders require greater compensation to lend money for two years than they do to lending money for 10 years.
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