The US CPI inflation has been measured at 3.2%, slightly lower than the anticipated 3.3%. This news has led to Bitcoin and Ethereum prices being stressed, although traders hold optimism.
In July, the yearly CPI inflation is reported at 3.2%, slightly lower than the expected 3.3%, as revealed by the U.S. Bureau of Labor Statistics. Moreover, the Core CPI inflation stands at 4.7%, just below the predicted 4.8%, and the monthly rate remains at 0.2%.
The fact that annual inflation is higher than the previous month’s 3% could allow the US Federal Reserve to keep a cautious stance. Both the stock and cryptocurrency markets might need to wait a bit longer for a significant change.
Different financial experts had various predictions for CPI inflation. JP Morgan foresaw 3.4%, while others like Goldman Sachs, Barclays, HSBC, and UBS estimated 3.2%. BMO, Bloomberg, Citigroup, Credit Suisse, Morgan Stanley, and Visa predicted inflation at 3.3%.
If headline inflation had been under 3%, it could have boosted stocks and crypto markets. Currently, the CME FedWatch Tool suggests a more than 90% chance that the Federal Reserve will maintain the Federal target rate during the upcoming September 2023 Federal Open Market Committee (FOMC) meeting. The US Dollar Index (DXY) dropped 0.63% to 101.78 and is expected to continue falling.
Possible Bitcoin and Ethereum Price Decline After CPI Release
Traders hope for Bitcoin to cross the significant levels of $30,000 and Ethereum to reach $2,000. Yet, cryptocurrency values are still facing strain.
Bitcoin’s price declined over 1% in the past day, currently trading around $29,500. As inflation was lower than anticipated, a minor increase is predicted. Analysts foresee Bitcoin rising to its earlier projected mark of $35,000, but some fluctuations could occur.
BREAKING: CPI expectations 3.3%, reality is that we hit 3.2%.
Core CPI 4.7% instead of 4.8% expected.
Unemployment claims also rallying to 248K.
This means, no fear, but continuation.
I'm buying. #bitcoin
— Michaël van de Poppe (@CryptoMichNL) August 10, 2023
At the moment, Ethereum’s price is above $1,850, having dropped by 0.5% in the last 24 hours. Both Bitcoin and Ethereum have seen low trading volumes for weeks due to limited market movement.
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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