If CPI meets or falls short of expectations, the Fed will most likely pause.
1. The US CPI data has been declining for 11 consecutive months, from last year's peak of 9.1% to this year's trough of 4.9%. The continuous decline shows that the inflation is getting closer to the target of 2%. The most direct reaction is the cessation of the Fed's interest rate hike policy or even the occurrence of a rate cut.
2. The CPI in June is expected to be 4.9% in May. If it is lower than this number, there is a high probability that there will be no interest rate hike in June, which will of course be good for the cryptocurrency market. Bitcoin trading has been relatively light in the past two days, with no upward or downward breakthroughs, and it seems that everyone is waiting for the CPI data and the implementation of the interest rate meeting.
3. From a technical perspective, Bitcoin must break through the downward trend line to reverse the downward trend. Otherwise, it will still test around 25,300 until it falls below this position to test the support level of 24,000U.
4. In the CPI chart, we found that the orange part shows that the price of BTC fell and then rose before the CPI was announced, and the blue part shows the opposite. The price has fallen by 3,000 points from 28,400 this time, so we still have a little expectation on the trend of BTC price on the day of CPI announcement. Do you think it will rise or fall?
