Investors are cautious as Bitcoin experiences a minor dip ahead of Wednesday's CPI (Consumer Price Index) data release. Anticipating a 92% chance of a 0.5% interest rate hike, analysts focus on core CPI figures, expecting total inflation to drop to 3.20% YoY, the lowest since March 2021. Core CPI is also forecasted to fall to 5.1% YoY, the lowest since November 2021.
Despite Bitcoin's price stability, network fundamentals show promising signs, with network difficulty set to increase significantly, and the hash rate potentially surpassing 400 exahashes per second. While Bitcoin's security strengthens, prices may remain stagnant until CPI data is revealed. If another interest rate hike occurs, Bitcoin could drop below $30k. The ongoing strength of the network may, however, sustain investor confidence.
The enthusiasm around the BTC ETF seems to be waning, as noted by JPMorgan. Depending on inflation aligning with the Fed's 2% target, investors might favor riskier assets, expecting prolonged low-interest rates. The market sentiment is reflected in the given BTC and SOL price movements, along with trading signals for $OCEAN/USDT, emphasizing cautious trading strategies in the current environment. #cpi #BTC #crypto #cpi #dydx #Flow #BTC