Crypto Market News: Annual CPI inflation for the month of June comes in at 3% against market expectations of 3.1%, according to the US Bureau of Labor Statistics. In addition, core CPI inflation comes in at 4.8%, the lowest since November 2021, from 5.3% in May. It means that the US Federal Reserve can conduct an accommodative monetary policy and decide on a pivot.
Headline inflation falling to 3% will trigger further upward moves in the stock and crypto markets. JPMorgan analysts said inflation is likely to fall below consensus estimates and force the Fed to switch to an easing outlook. Wall Street giants are also estimating a massive 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%.
Following the CPI data, CME FedWatch Tool shows a 90% chance of an increase of 25 basis points at the July 26 FOMC meeting. The US dollar index (DXY) fell to a two-month low of 101.16 and is expected to continue falling below 101. It will support further upward movement in Bitcoin price above $31,000.
Bitcoin (BTC) and Ethereum (ETH) set to rise after US CPI
BTC price is aiming to surpass the USD 31,000 level again, rising more than 1% in just minutes following the CPI data. With inflation cooling more than expected, analysts expect the BTC price to rise to a previously expected level of $35,000. However, some volatility can be expected.
Meanwhile, Ethereum price is trading above $1900, up 1% in the past 24 hours. Bitcoin and Ethereum prices surged above crucial levels after the massive rally.
Popular analyst Michael van de Poppe said the CPI data positive for the markets and for Bitcoin. Other analysts also predicted a further rise in Bitcoin.
Bitcoin is sideways, but volatility is coming.
CPI is falling off a cliff and markets are ready to fly.
Discuss everything with @Joshua_Frank_ And @TXWestCapital at 9 a.m. EST. https://t.co/rq1DG2RdgX
— The wolf of all streets (@scottmelker) July 12, 2023
Also Read: Bitcoin (BTC) set at $35,000, Ethereum (ETH) above $2,000 as US CPI inflation falls
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.
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This post US CPI inflation cools to 3%; Bitcoin, Ethereum Price-In For Rally, US Dollar Falling
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