How You Should Prepare Ahead Of This Key Event

0
24

The U.S. Bureau of Labor Statistics will release the Consumer Price Index for the month of July. The announcement is set to be made at 10:30 A.M. Eastern Time. The Consumer Price Index is a measure of the monthly change in price paid by consumers.

The CPI is a strong indicator of the inflation levels of a nation. The Federal Reserves take into consideration the recent CPI data for deciding their interest rates. Many economists are expecting a CPI of 8.7%. 

What The CPI Means For Crypto

The Consumer Price Index is a strong indicator of the inflation levels of the nation. The Fed curbs a higher inflation rate by hiking the interest rate. Higher rates often bring volatility in the markets, including the crypto market.

The U.S. inflation rates have been a cause of concern for the crypto community. The CPI of 9.1%, released in the month of June, showed inflation at the highest level in 40 years. This resulted in high volatility in the crypto market. Consequently, Bitcoin suffered the worst financial quarter in over a decade.

The CPI revealed in the month of July, despite being at an extremely high 9.4%, did not have a significant impact on the crypto market. According to Lark Davis, a major crypto influencer, the reason was that high inflation was already priced in. Many economists believed that recessionary fears will cause the Fed to pivot from its hawkish stance.

However, if the CPI numbers are high, the Fed might commit to another unusually large hike.

How To Prepare For The Reveal

Many economists have given a CPI estimate of 8.7%. However, Michael J Kramer, the founder of Mott Capital, has revealed that the Cleveland Fed estimates the CPI to be at 8.8%. He also revealed that the CPI has always been higher than Cleveland Fed’s estimates since Fall 2021.

Lark Davis expects market volatility as well ahead of the CPI reveal. He revealed that Bitcoin’s daily RSI uptrend is hanging by a thread. Both BTC and ETH are down by about 5% in anticipation of today’s reveal.

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

bitcoin news india, bitcoin current price in india, bitcoin binance, bitcoin buy india

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here