Investors Await CPI Data Amid Government Shutdown and Fed Rate Speculation
- The U.S. Bureau of Labor Statistics will release the Consumer Price Index (CPI) data today, despite the ongoing government shutdown.
- Economists predict a monthly CPI increase of 0.4%, which would raise annual inflation to 3.1%, up from last month’s 2.9%.
- Core CPI is expected to rise by 0.3% month-on-month, maintaining an annual rate of approximately 3.1%.
- If CPI figures fall below expectations, Bitcoin (BTC) could rise above $112K-$115K, while a hotter print may push BTC down to $102K-$104K.
- Traders are preparing for volatility in Bitcoin and Ethereum as option markets show increased put demand following recent market movements.
The upcoming CPI data is crucial for gauging inflation trends, which directly impact Federal Reserve rate decisions and overall market sentiment in the cryptocurrency space.
With expectations set at a core CPI increase of around Bitcoin prices may either surge or face significant selling pressure based on today’s inflation report.(Source)
