Bitcoin and Altcoins' Eyes and Ears on Critical Data from the USA: What to Expect?

It is thought that the US inflation data to be announced today may cause the price of Bitcoin to rise again.

Although Bitcoin and other cryptocurrencies, which have been in a period of decline for a while, show signs of recovery, most investors have a pessimistic perspective. It is expected that the US inflation data to be announced today at 15.30 CET may create a turnaround in the cryptocurrency market.

The cost of living in the U.S. is expected to rise 0.1% monthly in June after remaining flat in May, leading to an annual increase of 3.1%, according to economists surveyed by Dow Jones. Core CPI, which excludes food and energy prices, is expected to increase by 0.2% compared to May and 3.4% compared to June last year.

Market maker Wintermute said analysts' optimistic outlook for late 2024 and 2025 depends on the FOMC lowering policy rates, and that lower rates typically increase liquidity, driving investors into risky assets such as cryptocurrencies.

Bonds may rally

It is thought that the reaction of the US Treasury bond yield curve to the expected soft CPI data may affect the general market sentiment and Bitcoin. Slowing inflation and increasing interest rate cut expectations may reduce two-year bond yields, while 10-year bond yields may remain high. It is estimated that this situation may cause the yield curve to steepen in the bullish trend.

According to the CAIA Association, such bullish periods often occur during times of economic contraction, and a steepening of the curve usually signals the beginning of a recession. Investment banks such as JPMorgan and Citi are also making transactions based on this steepening.

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