LIVEđ„Core CPI Figures to Make Crypto Go Up: Bitcoin Price Set to Surge if These CPI Projections Hold Trueđ
Today's US Consumer Price Index (CPI) data, set for release at 8:30 am ET, could significantly impact Bitcoin prices. Bitcoin has recently shown a strong reaction to macroeconomic news, making this report a key event for crypto investors.
The CPI measures inflation by tracking changes in prices of consumer goods and services. After three months of higher-than-expected inflation, analysts now expect a slight slowdown for April. This could influence monetary policy and financial markets.
CPI Expectations
- Year-on-Year Increase: Expected to be 3.4%, down from March's 3.5%.
- Month-to-Month Increase: Projected at 0.3%, a decrease from the previous 0.4%.
- Core CPI (excluding food and energy): Expected to drop from 3.8% to 3.6% year-on-year, with a monthly increase slowing to 0.3% from 0.4%.
Economists at Goldman Sachs predict core CPI will continue to decline, stabilizing around 3.5% year-on-year by the end of 2024, with core Personal Consumption Expenditures (PCE) inflation expected at 2.7% by December 2024.
The CPI data typically has a significant impact on market dynamics, often more so than the Producer Price Index (PPI). With PPI data released today, market reactions to both reports will be closely watched.
Crypto analyst Ted (@tedtalksmacro) warns of potential market volatility, noting that PPI often leads CPI numbers, which could trigger a stronger market response if expectations are missed.
BTC's Reaction?
BTC and the crypto market have been highly sensitive to inflation figures and Federal Reserve policies. Analyst Ted suggests that a slowdown in inflation could boost Bitcoin prices, stating, "This is the first time in a while we are likely to see inflation data slow. That'll be good for risk assets like Bitcoin if true."
Softer inflation data could lead to more favorable monetary policies for Bitcoin and could set the stage for the next big move in Bitcoin.
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