Crypto Market News: The annual CPI inflation for the month of June comes in a 3% against market expectations of 3.1%, according to the U.S. Bureau of Labor Statistics. In addition, the Core CPI inflation comes in at 4.8%, the lowest since November 2021, from 5.3% in May. It means the US Federal Reserve can take a dovish monetary policy stance and decide on a pivot.
The headline inflation falling to 3% will bring further upside move in the stocks and crypto markets. JPMorgan’s analysts said inflation is likely to fall below the consensus estimates and compel the Fed to shift to a dovish outlook. Wall Street giants also estimated a massive fall in CPI inflation. Bloomberg, Citi, HSBC, UBS, and Nomura expect CPI at 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities, and CIBC estimated inflation to fall to 3.1%. Meanwhile, JPMorgan, RBC, and Visa forecasted annual CPI at 3.2%.
After the CPI data, CME FedWatch Tool shows a 90% probability of a 25 bps hike during the FOMC meeting on July 26. The US dollar index (DXY) fell to a two-month low of 101.16 and expect to continue falling below 101. It will support further upside move in Bitcoin price above $31,000.
Bitcoin (BTC) and Ethereum (ETH) Set to Rally After US CPI
BTC price jumps to surpass the $31,000 level again, rising more than 1% in just a few minutes after the CPI data. With inflation cooling more than expected, analysts expect BTC price can rally to earlier expected level of $35k.
Meanwhile, Ethereum price is trading above $1900, up 1% in the past 24 hours. Bitcoin and Ethereum prices reached above crucial levels after the massive rally.
Also Read: Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls
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