Crypto Analyst Predicts High Bitcoin (BTC) Volatility Ahead of Today’s US CPI Data Release

The cryptocurrency market is gearing up for a potentially volatile trading session as investors await the release of the United States Consumer Price Index (CPI) data for April.

The CPI data, scheduled for release at 12:30 PM UTC today, is expected to have a major impact on Bitcoin and the broader crypto market, according to analyst Crypto Patel.

Inflation forecasters anticipate a slight decrease in both core and headline CPI figures. Forecasters expect the core CPI, which excludes the more volatile food and energy prices, to rise by 0.30% in April, resulting in a decrease in the 12-month rate to 3.6% from 3.8% in March. Similarly, the headline CPI is projected to increase by 0.37% in April, lowering the 12-month rate to 3.4% from 3.5% in March.

Market Sentiment and Expectations

As the CPI data release approaches, market participants are closely monitoring the potential impact on the cryptocurrency market. The CPI figures play a crucial role in shaping the Federal Reserve’s monetary policy decisions, which in turn influence market movements and investor sentiment.

Crypto Patel has warned traders to expect high volatility in Bitcoin and other cryptocurrencies due to the CPI data release. The analyst has also cautioned against overleveraging or forcing positions without a solid plan, emphasizing the importance of risk management during such events.

New Meme Coin to Watch Aiming to be Next $BONK, $WIF or $MEW

Milei Moneda is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president known for his libertarian and pro-Bitcoin stance. You have an opportunity with the ongoing low presale price to get in early!

Sponsored

Show more +

Previous CPI Data and Consensus Estimates

The previous CPI data, released in March, showed a year-over-year inflation rate of 3.5%. For the upcoming April data, the consensus estimate among economists is a slightly lower rate of 3.4% year-over-year.

While a decrease in the inflation rate may be perceived as positive news for the broader economy, the cryptocurrency market’s reaction to the data will depend on various factors, including investor expectations, market sentiment, and the overall economic outlook.

Potential Impact on Federal Reserve Policies and Market Movements

The CPI data is a key factor in the Federal Reserve’s decision-making process regarding interest rates and monetary policy. If the actual inflation figures deviate significantly from the forecasted values, it could potentially influence the Fed’s stance on interest rates and tapering of asset purchases.

A higher-than-expected inflation rate may lead to concerns about the Fed tightening its monetary policy sooner than anticipated, which could put downward pressure on cryptocurrency prices. Conversely, a lower-than-expected inflation rate may be viewed as a positive sign, suggesting that the Fed may maintain its accommodative stance for a longer period, potentially supporting the crypto market.

Read more: Roaring Kitty Triggers Competition Between Cat and Doge-Themed Coins: Analyst Shares Top 5 Cat Meme Coins To Watch

Join Aethir’s exclusive airdrop and earn badges by participating in events or holding community tokens. Complete tasks and secure your spot before the snapshot date is revealed!

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency

CaptainAltcoin
Logo