The crypto market, especially Bitcoin, is significantly affected by the US inflation and jobs data. Last month, the Federal Reserve chose to maintain interest rates, despite the country’s labor market remaining tight. Nevertheless, the US Fed’s favored way to monitor inflation, the CPI and Core PCE, continue to drop.
The market outlook predicts that the annual Consumer Price Index (CPI) inflation rate for June has dropped to 3.1%, which is the twelfth consecutive month of declines. This figure is the lowest since March 2021. Moreover, the core CPI inflation dropped from 5.3% in May to 5% in June, yet, the monthly CPI for June has gone up 0.3%, compared to 0.1% the prior month.
Analysts on Wall Street have predicted a major decline in Consumer Price Index (CPI) inflation. Bloomberg, Citi, HSBC, UBS and Nomura predicted CPI to be around 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities and CIBC guessed it would be 3.1%. JPMorgan, RBC and Visa, however, speculated it to be 3.2%.
JP Morgan’s analysts have suggested that if the headline inflation rate slides to between 3-3.2%, it will likely stimulate an upward surge in stocks and crypto markets. They have further commented that the consensus estimates of inflation may be undershot, which will cause the Federal Reserve to lean towards a more dovish stance.
The CME FedWatch Tool reveals a 90% chance of a quarter-point rate increase from the FOMC gathering on the 26th of July. Despite this, the US dollar index (DXY) has recently dropped to a 2-month low of 102, and is expected to dip even further below 101. This could provide a catalyzing effect for Bitcoin, potentially pushing its value beyond the $31,000 price point.
Cathie Wood’s Ark Invest, which is well-known as a crypto bull, has sold off a significant amount of Coinbase (COIN) shares, worth millions of dollars.
Cryptocurrency prices, such as Bitcoin and Ethereum, are expected to climb as CPI inflation and the US dollar continue to decline. The market has been influenced by Standard Chartered’s revised Bitcoin prediction, which is pushing the BTC price closer to the $100k mark. Analysts are forecasting that Bitcoin price will reach $35000 and Ethereum will exceed $2000.
Michael van de Poppe, an esteemed analyst, anticipates that Bitcoin will ascend to $31,500. Still, he recommends being mindful on the CPI day. Presently, the BTC cost is trading at $30,800, which is an increase of 1% from the 24-hour low of $30,358.
So far, the outlook for #Bitcoin is positive.
It can often be difficult to decide whether to proceed with an action on the day of the Consumer Price Index release.
The principle of using the stairs to go up and the elevator to go down is close by.
Be set and prepared at 2:30pm. #kqOLGBI4o1
On July 12, 2023, Michaël van de Poppe took to Twitter to share his thoughts.
Ali Martinez pointed out that ETH is supported by a range between $1800 and $1870, with 3.4 million addresses buying 11.2 million ETH. On the other hand, the $2,040 to $2,100 range is more crucial because 1 million addresses acquired 27 million ETH. The ETH price presently stands at 1888, showing a 0.5% increase in 24 hours.
Crypto Analyst Predicts Bitcoin (BTC) Price To Surge Parabolically Post-Halving, Reaching a High of $300K
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