Analysis of the current situation in the crypto market indicates that Bitcoin is preparing for new movements. A significant factor influencing short-term sentiment is the upcoming release of the Consumer Price Index (CPI) data.
Current Bitcoin Market Situation
Bitcoin's recent pullback is seen by analysts as a healthy shakeout, clearing excessive leverage before the next major move up. Despite fears of a potential crash, market structure shows strength. Key support levels are holding, and there are no significant downside catalysts.
CPI Forecasts and Fed's Reaction
CME analysts forecast the year-on-year CPI to be 2.7%, but if the actual figure falls below that, Fed Chair Jerome Powell could face renewed criticism. The Cleveland Fed's estimates indicate inflation may be cooling faster than acknowledged, driving further scrutiny.
Impact of CPI on Gold and Dollar
Markets are closely monitoring the release of the CPI data for June. A higher-than-expected print could reinforce the Fed's cautious stance, strengthening the dollar and weighing on gold prices. Conversely, a lower figure could provide support for gold amid hopes for rate cuts.
The anticipated CPI data could have a significant impact on the markets, including Bitcoin, gold, and the dollar. Traders are focused on potential changes in the Fed's policy.
