Breaking: US CPI Inflation Cools To 3%; Bitcoin, Ethereum Price-In For Rally, US Dollar Falls

Varinder Singh
July 12, 2023
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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.

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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.

Also Read: Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.