The Impact of CPI Data on Bitcoin and Crypto Market
– Wall Street is anticipating a rise in the July CPI data, which could have ripple effects on the digital asset market.
– Thomas Lee from Fundstrat Global Advisors expects the July CPI data to be revelatory, with potential outcomes determining whether it is good or bad for the market.
– Inflation is expected to pick up again in the coming months, according to forecasts from the Cleveland Fed and JP Morgan.
– Fundstrat’s analysis suggests a potential positive surprise for the financial markets, with their data science team expecting Core CPI to come in at +0.15% or better MoM.
– The prediction is anchored in the disinflationary pressures exerted by falling used car prices and a cooling housing market.
Could a Positive CPI Data Boost Bitcoin and Crypto?
– If the CPI data aligns with Fundstrat’s predictions, it could lead to a more dovish stance from the Federal Reserve, potentially weakening the US dollar and providing a boost to Bitcoin and crypto.
– Analysts emphasize the importance of liquidity in the market, especially during significant data releases like the CPI.
– The key areas of support and resistance in the crypto market are currently at $29,000 and $30,000.
– The release of the CPI data is expected to be revelatory, with its impact on the Bitcoin and crypto market yet to be seen.
– The current market price indicates an 85% chance of no rate hike at the next September meeting, according to the FedWatch tool.
Hot Take: The CPI Data Could Shift the Crypto Market
The release of the CPI data has the potential to significantly impact the Bitcoin and crypto market. If the data aligns with Fundstrat’s predictions, it could lead to a more favorable environment for cryptocurrencies, with a weaker US dollar and increased investor confidence. However, the outcome remains uncertain, and it will be interesting to see how the market reacts. Traders should closely monitor liquidity and key support and resistance levels as rapid price movements are possible. Overall, the CPI data has the potential to shift the crypto market in either direction.
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