Crypto Market Update: Anxiety Ahead of U.S. CPI Data Release Keeps Markets Nervous
Anxiety Grips Crypto Markets Ahead of U.S. CPI Data Release
As the U.S. prepares to release its monthly Consumer Price Index (CPI) data on Thursday morning, anxiety has taken hold of the crypto markets. With the overall crypto market capitalization holding steady at $2.15 trillion, investors are on edge as they await the latest inflation figures.
Among the top 10 cryptocurrencies, Bitcoin, Solana, Toncoin, and Avalanche have seen declines, while Ethereum, BNB, XRP, Dogecoin, Cardano, and TRON have recorded gains over the past 24 hours. This mixed performance reflects the uncertainty surrounding the upcoming CPI data release.
Market concerns are largely attributed to expectations of a spike in inflation. Despite recent disinflationary trends, analysts predict that the month-on-month headline consumer price inflation will edge up to 0.1 percent in June, with the core component remaining steady at 0.2 percent.
While the headline annual CPI is expected to decline to 3.1 percent from 3.3 percent in the previous month, the core component is forecasted to hold steady at 3.4 percent. Federal Reserve Chair Jerome Powell’s recent comments about not waiting for inflation to hit 2 percent before cutting rates have added to the uncertainty in the markets.
As investors await the CPI data release, Bitcoin slipped half a percent to trade at $58,272.43, while Ethereum rallied 1.6 percent to reach $3,142.13. Other cryptocurrencies in the top 10 have also seen mixed performances, reflecting the overall nervousness in the market.
In the midst of this uncertainty, reports of Republican Presidential nominee Donald Trump’s attendance at the Bitcoin 2024 Conference have sparked excitement among Bitcoin enthusiasts. This unexpected development adds another layer of intrigue to the already tense atmosphere in the crypto markets.
As investors brace themselves for the CPI data release and its potential impact on the markets, all eyes will be on how the numbers unfold and what they mean for the future of cryptocurrencies. Stay tuned for more updates on this developing story.
