This week, the cryptocurrency market anticipated volatility due to the analysis of CPI (Consumer Price Index) and PPI (Producer Price Index) data by the Federal Reserve.
Overview of CPI and PPI Data
The Federal Reserve is focusing on upcoming CPI and PPI data to assess monetary policy in the U.S. These indicators are critically important as they can significantly influence market expectations.
Cryptocurrency Market: Reaction to Data
Bitcoin (BTC) showed resilience, rebounding after a recent dip, while Ethereum (ETH) faced market pressure. Altcoins also saw increased investor interest, especially TAO and SOL. Outlooks for the U.S. dollar, prompted by new fiscal policies, contributed to increased inflows into digital assets.
Analyst Commentary Analysis
Institutional analysts note the influence of the data on major cryptocurrencies. Jianing Wu from Galaxy Digital remarked, "BTC briefly dipped below $100,000 mid-month but rebounded strongly into month-end... ETH underperformed major peers, falling 2.41% on elevated volatility. The June CPI print marked a second downside surprise, supporting the view that inflation is cooling."
The cryptocurrency market anticipates broader implications from inflation data, with market sentiment swiftly adapting to economic indicators.
