Market Overview
The cryptocurrency market is on edge as key assets decline in anticipation of the U.S. inflation data release. The U.S. Consumer Price Index (CPI) report for June is expected today at 08:30 ET (12:30 UTC). Analysts, including Jesse Cohen from Investing.com, are predicting a modest decrease in the U.S. inflation rate, with estimates ranging between 3% and 3.2%.
Analyst Predictions
Here’s a quick rundown of the inflation rate predictions from major financial institutions:
– TD Bank: 3.0%
– Scotiabank: 3.0%
– JP Morgan: 3.1%
– Wells Fargo: 3.1%
– Citi: 3.1%
– Barclays: 3.1%
– BNP Paribas: 3.1%
– Nomura: 3.1%
– Investing.com: 3.1%
– Bank of America: 3.2%
– Goldman Sachs: 3.2%
– Morgan Stanley: 3.5%
Morgan Stanley stands out with the highest estimate at 3.5% year-over-year (YoY).
Potential Impact on Fed Rate Decisions
According to Jesse Cohen, if the June inflation rate is around 3.1%, it could increase the likelihood of a Federal Reserve rate cut in September. However, if the rate is above 3.5%, rate cuts in 2024 may be off the table.
Historical Context
The inflation rate has been on a downward trend, dropping from 3.4% in April to 3.3% in May, the lowest level since April 2021. This decrease led to a market rebound, with Bitcoin (BTC) surging past $69,000 on June 12, the day the inflation report was released.
Current Market Reaction
Historically, the crypto market tends to see bearish corrections ahead of CPI reports, and this time is no different. Over the past 24 hours, the global crypto market cap has declined by 1%, currently sitting at $2.24 trillion. Bitcoin has slipped 2%, trading around $57,900.
Looking Ahead
A decrease in the U.S. inflation rate could signal a potential bullish momentum for the crypto market, while an increase might result in continued market pressure. Investors are closely watching today’s CPI release for further market direction.
**Disclosure**: This article does not constitute investment advice. The information provided is for educational purposes only.
