Here are the inflation data
Today is decisive. THE data on US inflationwaiting for FOMCcould in fact determine the trend of Bitcoin and the crypto market in general in the short term, in a context where the macro factors to arouse greater interest among investors.
Analysts have bet on maintaining the annual inflation rate at 3.4%, while compared to the “core” data the forecasts gave an increase of 0.3% for May, in line with the April data.
Consequently, even i interest rates should remain unchangedbut for this we will have to wait for the Fed’s opinion in the evening.
It’s been a long time since we waited with such trepidation for the data on US inflation. With Bitcoin rapidly rising in the first months of 2024, no one had paid particular attention to it, but with the first setbacks and a increasingly uncertain macroeconomic situationthe US CPI becomes a fundamental criterion for seeing which direction the market can take.
The price action of BTC in the last few days has demonstrated this, dropped to almost $66k just this week. For some, BTC’s “stumble” could just be a “run-up” for a more solid rise in light of favorable data, while for others there would be the risk of seeing the first cryptocurrency drop to the $60k level.
Decisive data for the crypto industry
As the announcement approached, the crypto world experienced a increasing volatilitywith BTC apparently recovering after a local low at $66k, and Ethereum in its wake fighting for $3,500.
A medium-long term bullish vision could ignore these data, but it is undeniable that all this attention to the publication of the CPI is decisive for BTC price action in the short term.
Last month, the CPI reached the 3.4% yoyand the forecasts have always stood at 3.4%.
The newly published data is slightly better than expected:
CPI (yoy): +3.3%
Core CPI (yoy): +3.4%
In fact, Bitcoin immediately reacted well, instantly exceeding $69k, perhaps once again targeting the fundamental psychological support of $70k. However, we will have to wait a little longer to see how investors will behave, awaiting the appointment with the FOMC.
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