Markets are hot in anticipation of the CPI release tomorrow, as inflation will have been significantly reduced mainly from the banking crash plusthe extra rate hike

We see hot markets right now and Bitcoin has finally punched through the 30k barrier. It is probably not a coincidence that the inflation release is scheduled for tomorrow, as we expect inflation to have been significantly reduced from the reading for February(which was released in March).

Most of these effects will come from the banking crash, as banks are effectively the main agents of credit(money) growth in the economy. New money mainly gets into the system from bank loans. Banks are still on rocky ground and have taken very conservative positions to sure up their reserves of cash. For comparison, at the height of the 2008 crash chaos, banks borrowed around 110 Billion in one reporting period from the Fed. This number has risen to a record 150 Billion during this crash so far.

With banks no longer lending, a major part of inflation has already been removed. Even without the crash, inflation was already falling an a pretty decent rate as reported between last month and the previous month, and we have only had an extra 0.25% rate hike to further depress inflation.

Thus, we expect to see inflation come down quite a decent bit if not quite a lot this month. And this is only bullish for markets.