Ahead of the release of April 2023’s Consumer Price Index (CPI) data by the US Bureau of Labor Statistics, US stock futures experienced a minor drop. This data holds significant importance for the markets as it could potentially act as a catalyst to the US Federal Reserve’s shift in stance on target rate hike. With the upcoming Federal Open Market Committee (FOMC) meeting scheduled for June 2023, there are expectations that rate hikes may be paused. The inflation data will also provide insight into the effectiveness of the ongoing rate hikes.
Cointelegraph reports that the headline consumer price index is expected to maintain an annual 5%. If this prediction holds true, JP Morgan analysts forecast that the S&P 500 Index will see a jump of 0.5 to 0.75%. This could potentially create a bullish scenario for Bitcoin price, given its direct correlation with tech stocks. Furthermore, the CME FedWatch tool indicates that the US Federal Reserve may cut interest rates, based on futures.
With narrow fluctuations and almost no deviation from its price 24 hours prior, Bitcoin price showed little volatility before the release of the CPI data. CoinGape previously reported that Bitcoin found support at the $27,000 level; the next resistance levels are expected to be around $31,200 and $34,600.
In related news, Ripple CEO Brad Garlinghouse addressed the question of why XRP didn’t register with the US SEC. Meanwhile, Gemini has recently listed the PEPE Meme Coin following Binance, and analysts are predicting a significant price rally.
However, it is crucial to note that the presented content may contain the author’s personal opinion and is subject to market conditions. It is vital to conduct thorough research before investing in cryptocurrencies, as the author or publication bears no responsibility for any personal financial loss.
In conclusion, the forthcoming CPI data release will have noteworthy implications for the markets and could serve as a determinant of the US Federal Reserve’s future decisions on target rate hikes. The impact of this data on Bitcoin price and its correlation with tech stocks will be a point of interest for crypto enthusiasts and investors alike. As always, vigilance and educated decision-making are essential for success in the ever-evolving world of cryptocurrencies.
Source: Coingape
