since the beginning of March bitcoin (BTC) purchases increased. Prices rose from around $20,000 to $28.3k on March 11. However, the CPI (Consumer Price Index) data for March, which will be released on April 12, may bring a new surge for the crypto market. The Federal Reserve will also release the minutes of the last FOMC (Federal Open Market Committee) meeting.
While markets would like to see a faster inflation drop, his views appear to differ from the Fed’s. The Federal Reserve is still hawkish, though market sentiment indicates that rate hikes likely won’t last long. The Fed will likely repeat a 0.25% rate hike, according to data from CME Group’s FedWatch tool. Also, according to analyst James Choi, the upcoming CPI data will put the dollar’s strength into a three-month free fall. Choi said:
“People seem to have no idea how USD DXY will fall in the next 3 months.”
However, BTC CPI he may have something to gain amid the volatility that could follow the release of his data.
How Bitcoin (BTC) May Respond to This Month’s CPI Data
Volatility is how most traders profit in a turbulent market, and the data seems to indicate plenty of volatility. According to Kaiko, Bitcoin is moving away from stocks when it comes to volatility. The gap between the 30-day rolling volatility of the Nasdaq and Bitcoin has reached a one-year high as a result of the US banking crisis.
Kaiko last week crypto- reported that the correlation between the asset and gold is currently stronger than the correlation between Bitcoin (BTC) and the S&P 500. The reverse correlation between BTC and the US dollar is also dissipating quickly, according to Kaiko.
Judging by the trend, if the US Dollar loses control, we may even see a drop in BTC prices in the short term due to the falling correlation. BTC is currently facing resistance at $28733.52 and support at $27794.27.
As we reported as Koinfinans.com, at the time of writing, BTC is trading at $ 28,361.32 with an increase of 1.7% in the last 24 hours.