Bitcoin’s price reacted sharply to the upcoming CPI report.
Experts predict the CPI report could significantly impact crypto prices.
Bitcoin’s recent dip has been met with both skepticism and optimism from analysts.
The United States awaits the release of the May 2024 Consumer Price Index (CPI) report, and blockchain analysis platform Santiment predicts Bitcoin (BTC) to react strongly.
In an X (formerly Twitter) post, Santiment stated that experts forecast a 3.4% year-over-year or 0.3% month-over-month increase for the US CPI, due on June 12th at 12:30 pm UTC.
🧑💼🇺🇸 The May 2024 Consumer Price Index (CPI) report is scheduled to be released tomorrow (June 12th) at 12:30pm UTC (11 hours from now). Current experts expect a 3.4% YoY or 0.3% MoM increase…🐂 If lower, it's a signal that inflation is slowing, increasing the likelihood of… pic.twitter.com/GDFWguyRbo
— Santiment (@santimentfeed) June 12, 2024
Santiment noted, “If actual numbers are lower than expected, it signals slowing inflation, likely boosting crypto prices. If numbers are higher, it signals persistent inflation concerns, likely causing crypto to drop.”
Meanwhile, Bitcoin’s recent price dip has been labeled a “scam dump” by crypto researcher “gumshoe,” who highlighted similar dips before all four Federal Open Market Committee (FOMC) meetings in 2024. The researcher said:
“BTC dumped 10% in the 48 hours before all of them on FOMC day… it recovered the entire move the market always prices in overly bearish statements, then reverses.”
Santiment also observed that Bitcoin’s dip below $67,000 triggered a surge in social media buy calls. The firm noted, “Historically, when the gap between sell calls and buy calls narrows, panic and FUD set in, often leading to crypto rebounds.”
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