CPI Numbers to be Out Soon: Here’s What to Expect From the Crypto Markets & The Bitcoin Price
The FED has been able to control the US inflation rates, which are dropping every month, displaying a bullish outlook for the crypto markets. The rates have been plunging almost since the start of the year, which has offered a strong boost to the crypto markets. Moreover, most of the cryptos, including the star token and Bitcoin, consolidate and plunge just before the announcement of the fresh CPI rates, which often results in a huge upswing of nearly 4% to 5%.
After facing a huge pullback of over 6% from the local highs at $64,500, the BTC price has triggered a healthy rebound. Is this a bullish signal ahead of the release of CPI data? Will CPI data continue to plunge? Will crypto markets face relief from the sell-offs?
In recent history, the drowning CPI rates have been bullish for the BTC price and the entire crypto market. The fall in rates generally indicates a drop in consumer prices, which may further drag the inflation rates lower. The US inflation data is about to be released anytime from now and the YoY rate is expected at 2.3% from the previous 2.5%. If the fresh rates are higher than expected, then it could be bearish for the crypto markets. Besides, if the rates remain at 2.3% or lower, it could be extremely bullish for Bitcoin.
The CPI rates in September were 2.5%, which stood with the expected rates that resulted in a 25% price rise of Bitcoin. Now that the expected rates are lower than these, the question arises: will the BTC price trigger another 25% rise and form a new ATH?
According to the market veterans, the CPI rate is expected to fall below 2.3%, which could be super bullish for Bitcoin and the entire crypto market. However, the question remains whether the bulls may hold the rally above the gains or it may be another short-term upswing.
