Investors are waiting for the April consumer price data to be announced. The Consumer Price Index (CPI), an important indicator of inflation, is expected to show an improvement compared to March.
However, if the data reveals unexpected shocks, the world’s largest cryptocurrency of Bitcoin Its price may drop by up to 13% to $53,000.
CPI data in the USA will be published tomorrow at 15:30 Türkiye time (UTC+3).
“An unexpectedly high CPI could trigger a media frenzy and lead to short-term declines in risk assets given current concerns about stagflation,” Zerocap warned in its report on Monday. Zerocap added that, on the other hand, it could push Bitcoin back to $65,000 if data shows hopeful signs that inflation is cooling.
Crypto enthusiasts are expected to examine CPI data for any indication that inflation is continuing or decreasing. According to analysts, a decline in inflation could prompt the Fed to lower interest rates, which could benefit riskier assets such as Bitcoin by lowering the cost of borrowing and therefore investing.
Markets are expecting a rate cut in September after employment and wages in the US were lower than expected the previous month, investment giant BlackRock said in its market report on Monday.
Despite short-term uncertainties, the long-term outlook for the U.S. economy remains positive, according to David Brickell, head of international distribution at FRNT Financial, and Chris Mill, a former forex trader. “Given the emerging macro dynamic, it is not a question of if we will make new highs for Bitcoin, but when,” he wrote in the “Connecting the Dots” newsletter. they wrote.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!