US CPI Data Release: How Will Bitcoin Price React?

Bitcoin News: With the annual Consumer Price Index (CPI) inflation for June 2023 cooling down, the financial markets are expecting similar numbers in the inflation data for the month of July 2023. It is expected that the core CPI inflation will remain at levels that are in line with the US Federal Reserve‘s expectations. This could mean that the central bank could likely look at maintaining the existing target rate or take a pivot to lowering the rates sometime in the coming months.

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Meanwhile, the CME FedWatchTool shows that as many as 86% of respondents predict a likelihood of the Fed keeping the Federal target rate steady at the upcoming Federal Open Market Committee (FOMC) meeting in September 2023. Ahead of the July inflation data release by the U.S. Bureau of Labor Statistics on Thursday, August 9, 2023, the Bitcoin price is trading just shy of the $30,000 mark.

Bitcoin To Regain Key Average Metric?

According to Steven Ehrlich, the Director of Research at Forbes Crypto, the Bitcoin price is set to match the 200-day simple moving average (SMA), which is currently on the upside for the top cryptocurrency. Having maintaining the 50 day SMA in recent weeks, BTC is likely to regain the 200 day average in the days to come, he suggested. Interestingly, the CPI data release is upcoming and has history of spurring upward path in Bitcoin trajectory.

“Bitcoin’s 50-day simple moving average has been a reliable floor for the asset so far in 2023. It also appears poised to regain its 200-day SMA as the crypto market gets ready for its July inflation print.”

Earlier, CoinGape reported a recent quote from Bloomberg report that said Bitcoin could soon witness a bullish breakout amid the spot ETF filings and the deadlines.

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