As we delve into Bitcoin price predictions, the forthcoming Consumer Price Index (CPI) report looms large, raising questions about its potential impact on the cryptocurrency market.
This key economic indicator has historically influenced market trends, but what can we specifically anticipate for Bitcoin in this scenario?
This Bitcoin price prediction will explore the potential outcomes and how they could shape Bitcoin’s price trajectory in the near future.
US Core Inflation Rate In Focus
The Consumer Price Index (CPI) reports a 5.0% year-over-year increase in US consumer prices in March 2023, at a seasonally adjusted annual rate of 301.836.
The market had anticipated a higher growth of 5.2%, which would have led to 302.254 points, indicating that this decline is as expected.
As of now, headline inflation has been decreasing for nine consecutive months and is presently at its lowest level since May 2021. The decrease in energy costs is the primary contributor to the drop in prices.
The US core inflation rate, which excludes volatile food and energy prices, is the primary focus for economists, policymakers, and investors.
The core inflation rate is considered to be a better gauge of long-term price trends, and a significant deviation from expectations could potentially impact financial markets, including cryptocurrencies such as Bitcoin.
How Does the US CPI Impact the Bitcoin and Cryptocurrency Market?
The US core inflation rate has a significant impact on the price of Bitcoin. If the inflation rate is higher than expected, it usually results in a stronger US dollar, which puts downward pressure on Bitcoin prices.
Conversely, if the inflation rate is lower than expected, it can weaken the US dollar, which may drive an increase in Bitcoin prices.
As a result, many investors and traders closely monitor the release of the CPI report as it can significantly influence their trading decisions.
Bitcoin is currently trading at $27,600 with a trading volume of $13.8 billion in the past 24 hours.
CoinMarketCap has ranked it as number one with a market capitalization of $536 billion.
However, Bitcoin is struggling to break the significant resistance at $27,700, which suggests a bearish sentiment may take over as the bulls struggle to breach the threshold.
Nevertheless, the trading range of Bitcoin remains between $27,250 and $27,700.
But wait, there’s more!
Today, US inflation data is set to be released, which could lead to a breakout from this range.
A strong US dollar usually causes a drop in Bitcoin prices, while weaker US CPI figures indicate a struggling US economy, which drives Bitcoin prices upward.
So, if Bitcoin can cross the $27,700 level, it has a chance to reach $28,050, and possibly $28,650. However, if Bitcoin remains below $27,700, investors might want to consider shorting Bitcoin with targets at $27,450 and $27,150. Fingers crossed for some positive news!
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The team at Cryptonews Industry Talk has compiled a roster of the most promising cryptocurrencies for 2023, with each one exhibiting significant potential for growth in both the near and distant future.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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