Analysts Assess Impact of U.S. Inflation on Bitcoin
- September’s consumer price index (CPI) is expected to rise by 0.6% month-on-month and 3.6% year-on-year.
- Core CPI, excluding food and energy, is projected to increase by 0.2% from August and 2.5% annually.
- Ryan Lee from Bitget Research warns that a higher inflation print could lead to further liquidations in Bitcoin due to adjustments in Treasury yields.
- Utkarsh Ahuja of Moon Pursuit Capital notes that elevated inflation may challenge crypto investments by keeping Treasury yields high and increasing capital costs.
The upcoming inflation report is crucial as it may influence the Federal Reserve’s interest rate policy, impacting market sentiment towards cryptocurrencies like Bitcoin. Analysts are particularly focused on how these figures might affect risk appetite in the broader investment landscape.
With a forecasted CPI increase of 3.6%, the potential for heightened volatility in Bitcoin markets remains significant as traders navigate their leveraged positions.(Source)
