Upcoming U.S. CPI Data Release and Its Potential Impact on Bitcoin
- The CPI data will be released on January 13, focusing on yearly readings for both CPI and core CPI.
- November’s inflation report showed CPI at 2.7% and core CPI at 2.6%, the lowest since March.
- New York Fed President John Williams indicated potential distortions in previous readings due to the government shutdown.
- Crypto traders currently see a 91% chance that the Fed will keep interest rates unchanged during its January meeting.
- Bitcoin has started the year strong, trading above $90,000, reflecting a year-to-date increase of approximately 6%.
The upcoming CPI data is crucial as it may influence the Federal Reserve’s decision regarding interest rates at the January FOMC meeting. A lower inflation reading could support further rate cuts, impacting market sentiment towards cryptocurrencies like Bitcoin.
With Bitcoin rising over $90,000 this year, the release of favorable inflation data could further fuel this momentum.(Source)
