This Thursday's US CPI could be a game changer for crypto!

This Thursday, eyes turn to the United States with the expected release of the Consumer Price Index (CPI). This economic indicator could cause significant movements in the markets, particularly for the US dollar and cryptocurrencies. As investors are on edge, speculation is rife about the potential impact of these key figures.

The Consumer Price Index: The Keystone of the American Economy

The Consumer Price Index (CPI) is a key measure of inflation that reflects changes in the prices of goods and services purchased by U.S. households. This index is calculated monthly by the Bureau of Labor Statistics (BLS) and serves as a barometer for assessing the cost of living. The CPI covers a broad range of products, including food, clothing, housing, health care, and recreation. Economists and policymakers closely monitor these data to anticipate economic trends and adjust monetary policies accordingly.

The release of CPI data for June is scheduled for this Thursday at 14:30, and it is particularly anticipated by investors. The current consensus is for a decline in annual headline inflation to 3.1%, from 3.3% the previous month, while core inflation is expected to remain stable at 3.4%.

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Publication of the CPI: what consequences for the dollar and bitcoin?

CPI inflation is a key determinant of the value of the US dollar. If CPI declines more than expected, it could reinforce expectations of a Federal Reserve rate cut in September, weakening the dollar. A weaker dollar could benefit GBP/USD, which recently broke through a major resistance, and bitcoin, which could see its price rise due to increased demand from institutional investors.

Current forecasts suggest headline inflation will decline to 3.1%, with core inflation holding steady at 3.4%. However, an upward surprise in CPI could upend these expectations. Fed Governor Lisa Cook has hinted at a possible soft landing for the economy, with inflation falling without a significant rise in unemployment, which could lead the Fed to consider a rate cut. This outlook is particularly supportive for equity markets and cryptocurrencies, including bitcoin, which could benefit from more accommodative monetary policy.

According to experts at 10x Research, including CEO Markus Thielen, Bitcoin could see a significant increase if the CPI data confirms a decline in inflation. Thielen indicated that Bitcoin could reach close to $60,000, an expectation that has already been manifested with a rise to $59,350 before the data was released.

Thus, Thursday’s CPI numbers could determine the future direction of financial and crypto markets. High inflation could strengthen the US dollar, while lower inflation could pave the way for rate cuts by the Fed, boosting bitcoin and other digital assets.

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