The post CPI Data Is Here Again! Crypto Traders Buckle Up for More Volatility appeared first on Coinpedia Fintech News
Global crypto traders cannot afford to close their eyes on this year’s Valentine’s Day as the United States Bureau of Labor Statistics prepares to release the Consumer Price Index (CPI). Notably, the CPI data has been found to have a huge impact on crypto prices than any other macroeconomic data. Moreover, consumer prices account for a majority of overall inflation, which most crypto assets are fighting to bear in the long term.
For instance, in the last two CPI data on December 13 and January 12, Bitcoin price bumped by a factor of more than 10 percent. A rise in Bitcoin is historically correlated with an uptick in the altcoin market. As such, crypto investors are waiting for today’s CPI data to see if Bitcoin price will invalidate a bearish sentiment.
“….The main result is that Bitcoin is orthogonal to all macro news that we consider except CPI. This is in stark contrast with the other assets that we use for comparison (gold, silver, S&P 500, and various bilateral exchange rates). All other traditional assets respond to macroeconomic news with an economically large and significant coefficient,” the Fed recently noted in a research report.
Closer Look at Today’s CPI Data and Crypto Volatility
Putting all other macro aspects aside, including heightened regulatory scrutiny from the United States and recession fears, today’s CPI data will significantly determine if Bitcoin price will rebound to $24k or continue declining toward $20k. As the Fed continues to tighten its monetary policies to combat high inflation, analysts’ expectations are for 0.5 percent (MoM) and 6.2 percent (annual), and about 0.4 and 5.4 percent for core CPI.
A deviation to the lower end is expected to weaken the dollar further, which crypto investors interpreted as a bullish thesis.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks