The Consumer Price Index (CPI) data, expected to be released at 3:30 PM Turkish time, could serve as a pivotal moment for Federal Reserve Chairman Jerome Powell.
June Inflation Expectations
The annual inflation rate for June is anticipated to reach 2.6%. If it falls below 2.4%, it could accelerate the Federal Reserve's timeline for interest rate cuts. Analysts suggest that lower inflation may increase demand for cryptocurrencies.
Rising Pressure on the Federal Reserve
With President Trump persistently urging Powell to cut rates swiftly, the costs of remodeling the Fed's headquarters have ballooned to $2.5 billion, dwarfing the initial estimate of $700 million. Congressional members are demanding transparency regarding the Fed's expenses, intensifying pressure on the bank's leadership.
Cryptocurrency Growth Prospects
Analysts predict that favorable inflation data could boost not only Bitcoin but also major altcoins, such as Ethereum and XRP. The combination of regulatory clarity and potential rate cuts is likely to serve as a catalyst for rising cryptocurrency prices.
Depending on the released inflation data, the Federal Reserve may adjust its monetary policy, which in turn will significantly influence the cryptocurrency market.
