The start of July brought unexpected challenges for #Bitcoin and the broader cryptocurrency market, diverging from earlier bullish expectations. Events such as the delayed launch of spot on #ETF✅ #Ethereum July 2 and reports of significant sell-offs $BTC by the #USA and #Germany governments have dampened market sentiment . However, there could be a potential reversal on the horizon as the market focuses on the upcoming CPI data expected on July 11th.
Crypto analyst CrypNuevo, sharing his ideas on social networks, emphasized the key role of CPI data in shaping the short-term trajectory of Bitcoin. He expects a possible rate cut based on upcoming CPI data and suggests lower inflation numbers could prompt the Federal Reserve to cut interest rates. Historically, such changes in monetary policy have proven beneficial to Bitcoin prices. CrypNuevo explained that the announcement of a rate cut will likely be received positively in the cryptocurrency market, potentially causing a significant rise in prices. The market often evaluates the Fed's future actions, making the release of the CPI a critical event.
Meanwhile, data from 10x Research underscores broader market sentiment, suggesting Bitcoin has reached initial decline targets near $55,000 and appears oversold in the near term. Potential market recovery catalysts include expected macro tailwinds and an expected SEC approval decision $ETH ETF. However, caution remains over the medium-term outlook amid ongoing market uncertainty.
The upcoming release of CPI data on July 11th has significant implications for both traditional and cryptocurrency markets. Analysts expect the inflation report to show a decline, potentially from 3.3% to 3.1%, which could signal a favorable environment for interest rate cuts and impact market sentiment. Market participants are closely monitoring these developments amid expectations of further actions by the Federal Reserve to maintain economic stability.
