Claim $500Breaking: US CPI Inflation Cools To 3%; Bitcoin, Ethereum Price-In For Rally, US Dollar Falls
Crypto Market News: The annual CPI inflation for the month of June comes in a 3% against market expectations of 3.1%, according to the U.S. Bureau of Labor Statistics. In addition, the Core CPI inflation comes in at 4.8%, the lowest since November 2021, from 5.3% in May. It means the US Federal Reserve can take a dovish monetary policy stance and decides on a pivot.
The headline inflation falling to 3% will bring further upside move in the stocks and crypto markets. JPMorgan’s analysts said inflation is likely to fall below the consensus estimates and compel the Fed to shift to a dovish outlook. Wall Street giants also estimated a massive fall in CPI inflation. Bloomberg, Citi, HSBC, UBS, and Nomura expect CPI at 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities, and CIBC estimated inflation to fall to 3.1%. Meanwhile, JPMorgan, RBC, and Visa forecasted annual CPI at 3.2%.
After the CPI data, CME FedWatch Tool shows a 90% probability of a 25 bps hike during the FOMC meeting on July 26. The US dollar index (DXY) fell to a two-month low of 101.16 and expect to continue falling below 101. It will support further upside move in Bitcoin price above $31,000.
Bitcoin (BTC) and Ethereum (ETH) Set to Rally After US CPI
BTC price aims to surpass the $31,000 level again, rising more than 1% in just a few minutes after the CPI data. With inflation cooling more than expected, analysts expect BTC price can rally to an earlier expected level of $35k. However, some volatility can be expected.
Meanwhile, Ethereum price is trading above $1900, up 1% in the past 24 hours. Bitcoin and Ethereum prices reached above crucial levels after the massive rally.
Popular analyst Michael van de Poppe said the CPI data is positive for the markets and for Bitcoin. Other analysts also predicted further upside in Bitcoin.
Bitcoin is sideways but volatility is coming soon.
CPI is falling off a cliff and markets are ready to fly.
Discussing everything with @Joshua_Frank_ and @TXWestCapital at 9:00 AM EST. https://t.co/rq1DG2RdgX
— The Wolf Of All Streets (@scottmelker) July 12, 2023
Also Read: Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls
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