Crypto News Today: Will Bitcoin Price Crash Or Rally After CPI Report

The post Crypto News Today: Will Bitcoin Price Crash Or Rally After CPI Report appeared first on Coinpedia Fintech News

The Bitcoin market has been struggling to surpass the $31,000 mark over the past three weeks, despite various attempts. The excitement around Bitcoin exchange-traded funds (ETFs) has also waned, even with multiple fund managers, including BlackRock, reapplying for their filings. Consequently, the market is eagerly anticipating today’s release of the Consumer Price Index (CPI) by the United States Bureau of Labor Statistics, as it is expected to impact both the cryptocurrency and Bitcoin’s bullish outlook.

Renowned Dutch crypto influencer and analyst, Michael van de Poppe, highlights the significance of the CPI data on the Bitcoin market. He asserts that any change in the price of goods and services bought by consumers will inevitably affect the value of the US dollar, subsequently impacting Bitcoin and other crypto assets.

What’s Next For Bitcoin Ahead of CPI Report?

The projected month-to-month CPI data is expected to increase by 0.3 percent, surpassing the previous 0.1 percent. However, the year-on-year (y/y) CPI is predicted to drop from 4.0 percent to 3.1 percent. Similarly, the Core CPI month-on-month (m/m) is anticipated to decrease from 0.4 percent to 0.3 percent.

Poppe presents two possible scenarios for Bitcoin’s short-term price action based on the CPI data. In the event that the data favor the US dollar, he foresees a potential decline for Bitcoin, with prices possibly dropping as low as $28,500 in the coming days. Conversely, a surge above the $31,000 threshold could materialize if the CPI data indicates an increase in inflation.

As the market eagerly awaits the CPI data release, investors and traders will closely monitor its impact on Bitcoin and the wider cryptocurrency market. A positive outcome may provide the much-needed catalyst to reignite Bitcoin’s bullish sentiment before altcoins take center stage.