In the coming months, traders and investors are closely monitoring economic indicators, especially inflation and decisions from the US Federal Reserve (Fed). Key dates include the release of the Fed meeting minutes and committee meetings that could influence market expectations.
Impact of Inflation on Economy
Data from Truflation shows that US inflation has dropped from 2.27% to 1.70% in under two weeks. This decline comes just ahead of the official Consumer Price Index data release expected on July 15. If the official figures confirm this decline, markets could quickly reprice their expectations toward a possible rate cut.
Market Expectations and Possible Changes
Currently, traders are not anticipating a change in rates this month, with 95% of forecasts pointing to holding the current rate. However, if the Fed hints at shifting sentiments in the July 9 minutes and inflation data continues to cool, it may set the stage for a September cut, which is expected by 61% of market watchers.
Perspectives for Bitcoin Cryptocurrency
Technically, Bitcoin shows signs of a potential breakout. A bullish pennant on the 4-hour chart suggests that BTC could rise nearly 5% if it breaks above $108,547, potentially pushing toward a new all-time high near $113,913. Momentum indicators like RSI and the Awesome Oscillator are turning more favorable, signaling that bears are losing steam.
In conclusion, if inflation data surprises on the downside and rate-cut speculation intensifies, this could significantly influence Bitcoin's movement. Otherwise, the cryptocurrency may remain trapped in its current range through July.
