Is Bitcoin Bracing For A Rally With US CPI Data?

Crypto Market News: Traders will be keenly looking at the consumer price index (CPI) report that is scheduled for release on Wednesday, July 12, 2023, as it could likely set the tone for yet another 25 bps hike when the US Federal Reserve’s Federal Open Market Committee (FOMC) convenes between July 25 and 26. As has been seen in the lead up to the recent macroeconomic events in the United States, the Bitcoin price looks to on a standstill path already. Recently, Fed Chair Jerome Powell stated that the central bank officials foresee at least two more rate hikes by the end of 2023.

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Meanwhile, the U.S. stocks are following sideways movement on Tuesday, in anticipation of the inflation numbers. Following the CPI numbers release on Wednesday, the producer price index data is set for release the following day.

Bitcoin To Remain Standstill In Lead Up To US CPI Report?

The CPI is a key index that measures price changes over a period of time. Hence, the markets will be looking at whether or not inflation in the United States follows the downward path. In this context, inflation trends become all the more important for Bitcoin price movement, considering BlackRock CEO Larry Fink’s recent comments suggesting Bitcoin’s status as an international asset and a possible hedge against inflation.

Good Morning legends #Bitcoin is back to ranging under $31,000 as Asia failed to reclaim that all important level 💯

With the CPI tomorrow, i guess we will remain to range until the data is released for us all 💯

Chart to follow later this morning for you all 💯

— Crypto Tony (@CryptoTony__) July 11, 2023

The CME FedWatch Tool shows that market participants expect a 25 bps hike with a 93% probability.

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