The majority of US inflation and job numbers affect the crypto market, especially the price of Bitcoin. The US Federal Reserve looks set to raise interest rates in July after keeping rates unchanged last month as the US labor market remains tight. However, CPI and Core PCE inflation, the US Fed’s preferred measure of inflation, continue to fall.
The market forecast shows that annual CPI inflation fell to 3.1% for June, the 12th consecutive month of declines. It is the lowest since March 2021. Core CPI inflation also fell from 5.3% in May to 5%. However, the monthly CPI for June is up 0.3% from 0.1% last month.
Wall Street analysts also estimate a huge drop in CPI inflation. Bloomberg, Citi, HSBC, UBS and Nomura expect a CPI of 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities and CIBC estimate inflation at 3.1%. Meanwhile, JPMorgan, RBC and Visa forecast annual CPI of 3.2%.
Headline inflation falling to 3-3.2% will drive further upsides in the equity and crypto markets. JPMorgan analysts said inflation is likely to fall below consensus estimates and force the Fed to switch to an easing outlook.
The CME FedWatch Tool shows a 90% probability that a 25 basis point hike will be announced at the FOMC meeting on July 26. However, the US dollar index (DXY) fell to 102 in 2 months and expects to continue falling below 101. will support further upward movement in Bitcoin price above $31,000.
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Bitcoin (BTC) and Ethereum (ETH) are starting to rally
Bitcoin and Ethereum prices will continue to rise as CPI inflation and the US dollar fall. Market sentiment towards the $100,000 BTC price has been triggered as Standard Chartered revised its Bitcoin forecast upwards. Crypto analysts point out Bitcoin price reaching $35,000 and Ethereum above $2,000.
Popular analyst Michael van de Poppe expected Bitcoin to Finally Cross $31,500. He does, however, advise caution on CPI day. BTC price is currently trading at $30800, up 1% from a 24-hour low of $30358.
So far, so good for it #Bitcoin.
It’s always hard to see if we can continue this move on a CPI day.
Stairs up, elevator down principle is just around the corner.
2.30 pm, that’s the time to get ready. pic.twitter.com/kqOLGBI4o1
— Michael van de Poppe (@CryptoMichNL) July 12, 2023
Meanwhile analyst Ali Martinez noted that ETH price sits on top of stable support between $1800 and $1870 where 3.4 million addresses bought 11.2 million ETH. However, the resistance range of $2,040 and $2,100 is more significant as 1 million addresses bought 27 million ETH. The ETH price is currently trading at 1888, up nearly 0.5% in the last 24 hours.
Also Read: Bitcoin (BTC) Parabolic Rally to Take Price to $300K After Halving, Crypto Analyst Predicts
Varinder has 10 years of experience in the Fintech sector, with more than 5 years dedicated to blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles and newspapers. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Bitcoin (BTC) set at $35,000, Ethereum (ETH) above $2,000 as US CPI inflation falls
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