The crypto market is in an important week because the United States is sharing data about inflation through the CPI and PPI reports. People are wondering if the US Federal Reserve will decide to “pause” or make changes to their plans based on this data. It’s a significant moment for the crypto market to see what might happen next.
The crypto market is facing an important week as the United States releases inflation data through the CPI and PPI reports. This information could influence the Federal Open Market Committee (FOMC) members’ decision on whether to continue raising interest rates or take a break. A pause in rate hikes could lead to a rebound in Bitcoin and Ethereum prices and potentially bring about a broader market recovery, signaling a positive trend for the rest of the year.
Market expectations are for the annual CPI to be 3.6%, higher than July’s 3.2%. Additionally, the core annual CPI for August is expected to cool to 4.3% compared to 4.7% in July. The market also anticipates the monthly core PPI data to cool down to 0.2%.
The U.S. Federal Reserve may halt its rate hikes as the job market cools and unemployment rates increased in the previous month. Traders are eagerly waiting for the CPI data this week to confirm which way the market might go. They are proceeding with caution in September, a historically challenging month for financial markets.
According to the CME FedWatch Tool, there is a 93% probability of the FOMC announcing a pause at their upcoming meeting on September 20. Wall Street analysts also believe there may be a possible rate hike towards the end of the year. Meanwhile, the U.S. dollar index (DXY) remains high, which could put pressure on Bitcoin prices.
Additionally, the European Central Bank will announce its decision on interest rates, with forecasts suggesting a pause in the midst of ongoing rate hikes since last year.
Crypto Market: Bitcoin and Ethereum Face Price Pressure
The crypto market is experiencing a lack of excitement due to two main factors. First, the DXY, a measure of the U.S. dollar’s strength, has been rising, which can impact the value of cryptocurrencies. Second, the U.S. SEC (Securities and Exchange Commission) has delayed its decision on spot Bitcoin ETFs, causing some uncertainty.
Bitcoin (BTC) Holds Steady
Bitcoin’s price hasn’t seen much change in the past 24 hours or the past week. It’s currently trading at $25,862. However, there’s been an increase in trading activity over the last day, suggesting that more traders are becoming interested.
Ethereum (ETH) Sees Minor Drop
Ethereum’s price has dropped by 1% in the last 24 hours and nearly 2% over the past week. It’s currently priced at $1,615, with a high of $1,627 in the last 24 hours. Notably, trading volume has surged by 85% within the last day, indicating increased activity among traders.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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