US Inflation Data and its Impact on the Crypto Market

All eyes on US inflation data

The crypto market is closely watching the release of US inflation data on Thursday. If inflation comes in hot, more rate hikes could be on the horizon. This could have a major impact on the crypto market, which is currently moving sideways with little change in Bitcoin and altcoin prices.

The importance of the Consumer Price Index

The Consumer Price Index (CPI) is a key economic indicator that measures the average price of goods and services purchased by consumers. It is closely watched by experts and can greatly affect the crypto market. If the CPI comes in lower than expected, it could provide relief and lead to a soft landing on the next FOMC meeting.

Potential scenarios for inflation data

There are two scenarios for inflation data. If the CPI rises from 3% to 3.3% YoY in July, it could lead to a worst-case scenario for the financial markets, including the crypto market. This could result in another interest rate hike. However, the market currently expects no further rate hikes in September.

Bitcoin Spot ETF decision underway

The SEC is currently considering the approval of the ARK 21Shares Bitcoin ETF. The deadline for approval has been extended multiple times, and if approved, it would be listed on the CBOE’s BZX Exchange. The decision is highly anticipated and could have a significant impact on the crypto market. If approved, it could increase demand for Bitcoin and other cryptocurrencies, but if denied, it could dampen investor enthusiasm.

Regulatory pushback expected

Many believe that there will be pushback from regulators regarding the approval of a spot crypto ETF. The SEC has never approved a U.S. spot crypto ETF before, but has approved investment instruments linked to BTC futures. The decision on the ARK 21Shares ETF will be closely watched by the crypto community.

Hot Take

The release of US inflation data and the decision on the Bitcoin Spot ETF are two major events that could significantly impact the crypto market. Investors should closely monitor these developments as they could shape the future of the market. While the outcome is uncertain, it is clear that both events have the potential to either boost or dampen investor enthusiasm in the crypto space.