XT Research Institute reminds that at 20:30 on July 12, 2024, Singapore time, the U.S. Department of Labor will announce: the U.S. June unadjusted CPI annual rate and the U.S. June seasonally adjusted CPI monthly rate.

The U.S. Consumer Price Index (CPI) is an indicator that measures changes in the price level of a basket of goods and services and is used to reflect inflation. CPI data directly affects the Federal Reserve’s monetary policy decisions. If CPI data continues to show high inflation, the Fed may raise interest rates or reduce asset purchases, thereby reducing market liquidity, which may put pressure on riskier assets including Bitcoin. The CPI data in the United States has a significant impact on the Bitcoin market through multiple channels such as affecting inflation expectations, the value of the US dollar, Federal Reserve policy, and market sentiment. Investors need to consider these factors together to understand the short- and long-term impact that the CPI data may have on the Bitcoin market.

If the published value is less than the expected value, for example: the published value of the US June unadjusted CPI annual rate is 3.0% less than 3.1%, and the published value of the US June seasonally adjusted CPI monthly rate is 0.0% less than the expected value of 0.1%. This is bad news for the US dollar and good news for non-US currencies. It is bad news for Treasury yields. It is good news for rate cut expectations and bad news for rate hike expectations. It is good news for risk markets and virtual currency markets. (Note: Related analysis is not intended as investment advice) #DYOR42711