Traders Await CPI Report Impact on Crypto Market and Interest Rates

  Traders Await CPI Report Impact on Crypto Market and Interest Rates

Traders Await CPI Report Impact on Crypto Market

 Traders are eagerly awaiting the release of the consumer price index (CPI) report on Wednesday, July 12, 2023. This report has the potential to greatly influence the decision-making process of the US Federal Reserve's Federal Open Market Committee (FOMC), which is scheduled to convene between July 25 and 26. If the CPI report indicates a significant change, it could lead to another 25 basis points (bps) hike in interest rates. The recent macroeconomic events in the United States have already caused the Bitcoin price to stabilize.

Federal Reserve Chair Jerome Powell recently expressed the central bank's expectation of at least two more rate hikes by the end of 2023. This forward guidance has further heightened the importance of the upcoming CPI report for market participants, who will closely analyze its findings.

In the meantime, the US stock market has been exhibiting a sideways movement on Tuesday, as investors anticipate the release of inflation figures. Once the CPI report is released on Wednesday, attention will shift to the producer price index (PPI) data, which is scheduled for release the following day.

The CPI is a critical indicator that measures changes in prices over a specific period. Therefore, market participants will closely scrutinize whether inflation in the United States is trending downward or not. The trajectory of inflation holds significant implications for the movement of Bitcoin prices, particularly in light of recent comments made by BlackRock CEO Larry Fink. Fink's remarks suggest that Bitcoin has gained recognition as an international asset and could potentially serve as a hedge against inflation.