Will Bitcoin Recover $28K Over US CPI Inflation Report?
The US Bureau of Labor Statistics is set to release the inflation measure, the US Consumer Price Index (CPI) data for the month of August 2023 on Wednesday, September 13. In the past, encouraging inflation data reports have triggered Bitcoin price (BTC) rally.
Also Read: Gary Gensler In US Senate Hearing: SEC Reviewing Grayscale Bitcoin ETF
The CPI is a key index that measures price change over a period of time. The data measures the increase or decrease in the price paid by the urban consumers on a monthly basis for a market basket of consumer goods and services.
US CPI For August 2023
The financial markets have shown signs of anticipation of the US Federal Reserve maintaining stance that requires keeping interest rates high in the context of strong economic data. Hence, investors will be closely watching the CPI data release for August, to be able to assess the central bank’s upcoming decision during the Federal Open Market Committee (FOMC) meeting scheduled between September 19-20, 2023.
The Bureau had earlier reported that in July 2023, the CPI for all urban consumers increased 0.2 percent, seasonally adjusted, and rose 3.2 percent over the last 12 months, not seasonally adjusted. In comparison, the wider market expectation is that the CPI for August increased by 0.6%, while the headline inflation for August is expected to come out around 3.6% year on year.
Steady Interest Rates?
The CME FedWatch Tool, which gauges the likelihood that the Fed will change the Federal target rate at upcoming FOMC meetings, shows a 93% chance of rates remaining steady at the 525-550 bps level in September and only a 56.4% chance of rates remaining steady in the November meeting.
Meanwhile, it remains to be seen if the Bitcoin price would see a rally after the CPI data release if the inflation recording comes out on expected lines. Earlier, CoinGape reported that BTC price has $28,168 as the neckline resistance.
Also Read: Bitcoin Can Quickly Rally To $70000 After Fed Decision, Says BitMEX Arthur Hayes
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