The global crypto market awaits today's release of the Consumer Price Index (CPI) by the U.S. Labor Department. This event may catalyze Bitcoin's growth, which has been consolidating within a $90,000 to $110,000 range.
CPI's Impact on Bitcoin
Today's CPI report is set for release at 13:30 UTC, with a forecasted monthly increase of 0.3%. This figure will influence the Federal Reserve's future interest rate decisions. According to CME's FedWatch tool, there is a 54% probability that the Fed might either reduce rates or leave them unchanged this year.
Analysts' Predictions
Analyst Ali Martinez recently noted in a post, "BTC accumulation trend score is near zero, signaling a period of consolidation. A shift in demand here could set the stage for the next big move!"
Possible Development Scenarios
If the CPI report comes in lower than expected, it will likely decrease Treasury yields and weaken the U.S. dollar, which could increase demand for risky assets like Bitcoin. However, some indicators warn of potential inflation growth, which might limit the Fed's ability to cut rates aggressively and dampen expectations for a sustained Bitcoin rally.
The market carefully watches the CPI, which might trigger Bitcoin's breakout from current consolidation. However, potential inflation growth may limit the Fed's actions and impact Bitcoin's future prospects.
