US CPI data is expected to be released today at 12.30 pm UTC. The cryptomarkt is braced for what a huge rally or a stop can be. Will the consumer inflation data shake the cryptom markets?
Summary
- US CPI data is expected to be released today at 12.30 pm UTC, with economists predicting that it will increase by 0.3% this month.
- The Cryptomarkt has braced the impact that would result from the CPI data release, which could make or pause the rally it is.
After the Cryptomarkt was 0.7% in August to collect the inflation data from producers or PPI soups, many traders wonder what they can expect when the US CPI data rolls today at 12:30 UTC. According to a recent Reuters surveyEconomists project that the consumer price index will increase by 0.3% in August in August, after an increase of 0.2% in July.
The CPI is expected to have grown on an annual basis of 2.9%, compared to 2.7% in July. However, there is also a possibility that the CPI figure could get harder than expected.
A weaker CPI could strengthen the expectations of traders in the field of monetary relaxation, especially of the Federal Reserve. The possibility that the FED will initiate an interest rate reduction with 25 basis points during its meeting next Wednesday is still in the running. In the meantime also priced investors in a slim possibility of reduction of 50-base-point, according to the CME Fedwatch tool.
If the US CPI data results come forward as expected, inflation can increase, gold and alternative assets such as crypto can get a much needed boost. Seen as a cover against inflation, higher inflation figures can be a good sign for crypto traders that the market could see the start of another rally.
However, a lower than expected inflation can strengthen the dollar and have the opposite effect on alternative assets such as gold and crypto. Too high an inflation percentage can also lead to the Fed using a more conservative approach and bail when lowering the interest rates that the crypto rally would stop.
The Cryptomarket Backs for American CPI data
According to facts From Coingecko, the total crypto market has increased lately. Some of the most important cryptocurrencies have been to the green zone most of today. Bitcoin (BTC) has risen by 1.4%, Ethereum (ETH) has risen by 2.6%and XRP (XRP) has risen by 1.1%.
The total crypto market capitalization succeeded in breaking through the psychological barrier of $ 4 trillion, which rises by 1.6%.
The largest cryptocurrency per market capitalization, Bitcoin has risen from lower levels and acts above $ 114,000, consolidates after a recent rally. On the short -term graph, Momentum looks muffled, where the RSI floats around 35 to 40, which suggests a somewhat bearish to neutral bias. Price promotion has been found in the vicinity of resistance just above $ 114,000 to $ 114,250, while immediate support is $ 113,500.
This continuous compression reflects a market that is waiting for a catalyst, and the American CPI data release at 12.30 pm UTC is ready to offer that exactly. If the American CPI data is softer than expected, traders will probably see it as a green light for the Federal Reserve to lower the interest rates.
This in turn can weaken the dollar and the demand for risk assets such as Bitcoin increases, so that a potential outbreak of $ 114,250 resistance zone is fueled.
However, an unexpected turn of events could see the CPI signaling higher inflation pressure that could slow down the Fed -Verspel and the strengthening of the US dollar. Bitcoin can be confronted with rejection in the event of resistance, causing a fall in the level of $ 113,500 risks, and if that floor fails, a deeper correction at the $ 110,000 – $ 107,000 is possible.
Given how the market has already priced in softer inflation earlier this week after weaker PPI data, the downward response to a surprise beat on CPI can be sharp.
Only a day before Binance saw his stablecoin reserves rise to a new of all time. With the addition of $ 6.2 billion, the net stablecoin inflow has reached at least $ 39 billion. An increase in stablecoin deposits could mean that traders are moving more from their funds to fairs, preparing themselves to implement them in crypto assets when time comes.
