Crypto Analyzer

Wall Street Estimates On US CPI Data, Will Crypto Prices Rally?

The U.S. Bureau of Labor Statistics is set to release the consumer price index (CPI) data for January, with expectations of a 6.2% inflation rate, the lowest since October last year. This announcement is eagerly awaited as it has the potential to impact both traditional and crypto markets.

The CPI release is significant as it will determine whether the U.S. Federal Reserve opts for further monetary policy tightening. The Fed previously slowed the rate hike to 25 basis points this month due to cooling inflation. Wall Street estimates suggest a fall in the U.S. CPI data for January, with predictions ranging from 6.1% to 6.4%. The lower inflation is expected to provide a boost to the markets and could push the stock market up by 2.5-3%.

The crypto market is also closely monitoring the CPI data release. The market has been facing challenges due to regulatory actions and other uncertainties. Traders are waiting for the CPI data to make their next move and are hoping for continued recovery in the market. Bitcoin is currently trading at $21,849, up 2% in the last 24 hours, and investors are anticipating cooling inflation in the coming months.

Additionally, market watchers are keeping a close eye on the US Dollar Index (DXY), which fell below 103 after a continuous rise over the last week. The crypto market often moves in the opposite direction to DXY, so a decline in the index could impact the market conditions.

Overall, the outcome of the U.S. CPI data release is expected to have a significant impact on both traditional markets and the crypto market. Investors and traders will closely analyze the numbers and make their decisions based on the implications for inflation and monetary policy.