Breaking: US CPI Inflation Comes In At 3.2%, Bitcoin And Ethereum Price To Rally?
The annual CPI inflation for the month of July comes in at 3.2% against market expectations of 3.3%, according to the U.S. Bureau of Labor Statistics. In addition, the Core CPI inflation comes in at 4.7% against market expectation of 4.8%, with the monthly rate also remaining at 0.2%.
The annual inflation data coming in hotter than last month’s 3% gives room for the US Federal Reserve to remain hawkish. The stock and crypto markets will have to wait a few more months for a pivot.
JP Morgan predicted a CPI inflation of 3.4%. Whereas, other Wall Street giants such as Goldman Sachs, Barclays, HSBC, and UBS estimated 3.2%. BMO, Bloomberg, Citigroup, Credit Suisse, Morgan Stanley, and Visa forecasted inflation to come in line at 3.3%.
The headline inflation falling below 3% could have brought further upside move in the stocks and crypto markets. In fact, the CME FedWatchTool now shows more than 90% probability of the Fed keeping the Federal target rate steady at the upcoming Federal Open Market Committee (FOMC) meeting in September 2023. The US Dollar Index (DXY) fell 0.63% to 101.78 and expect to continue falling.
Read More: Bitcoin Price Prediction – A Risky Run-Up To Key US CPI Data?
Bitcoin and Ethereum Price to Fall After CPI?
Traders are looking for Bitcoin and Ethereum to surpass key psychological levels of $30k and $2000, respectively. However, crypto prices continue to remain under pressure.
BTC price fell more than 1% in the last 24 hours, with the price currently trading near $29,500. With inflation coming in less than expected a small uptick is expected. Analysts expect BTC price to rise to an earlier expected level of $35k, but volatility can be expected.
BREAKING: CPI expectations 3.3%, reality is that we hit 3.2%.
Core CPI 4.7% instead of 4.8% expected.
Unemployment claims also rallying to 248K.
This means, no fear, but continuation.
I'm buying. #bitcoin
— Michaël van de Poppe (@CryptoMichNL) August 10, 2023
Meanwhile, Ethereum price is trading above $1850, down 0.5% in the past 24 hours. Bitcoin and Ethereum trading volume remains low for weeks amid a lack of volatility.
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