The Fed’s preferred inflation gauge, core PCE, likely rose in September, moving away from the 2% annual target. This would mark 55 consecutive months of inflation exceeding the goal, potentially swaying Fed hawks in favor of slower rate cuts.

Despite rising inflation, volatility indices show no major turbulence. Volmex’s BVIV hovers around 36%, with a 1.88% expected price swing. Low volatility expectations anticipate Fed rate cuts, priced as a done deal on Dec. 10.

A softer PCE report may push the 10-year Treasury yield below 4%, helping BTC break out of its trading range. Analysts suggest a softer labor market and contained inflation could support crypto’s rebound, while any upside surprise may keep markets range-bound until the Fed clarifies its path.

ING analysts caution that any decline in the benchmark yield could be short-lived, impacting alternative cryptocurrencies like ether, SOL, and XRP. Ether’s volatility index is slightly higher than bitcoin at 57.23%, signaling a 24-hour price swing of 3%.

Read more at Yahoo Finance: Here’s How Much Bitcoin, XRP, Ether, Solana May Move on Friday’s Inflation Report