This week, investors are focused on critical economic data from the US that could affect Bitcoin's price. Today, the US Consumer Price Index (CPI) data will be announced.
Impact of CPI Data on the Market
With a lack of significant crypto-focused news, investors are turning their attention to macroeconomic events. The CPI data is expected to significantly impact the market.
Analyst Commentary
Swyftx analyst Pav Hundal told Cointelegraph that a fall in August CPI could trigger a Bitcoin rally due to a classic short squeeze. He believes that lower August CPI will likely lead to expectations of a larger rate cut next week.
Current Situation
At the time of writing, Bitcoin is trading at $56,560. Should the CPI exceed expectations, a sell-off and decline in Bitcoin's price is possible, as the analyst notes.
In conclusion, the US CPI data plays a crucial role in predicting Bitcoin's price movements. The market is awaiting news to determine the next direction.
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