As the market anticipates Core CPI data and the US consumer price index, estimates by Wall Street experts suggest potential crypto market recovery. Moreover, Derivatives traders are optimistic about Bitcoin’s rally, which they anticipate will drive a broader market recovery.
The US Bureau of Labor Statistics is expected to release the CPI data today, June 12, following the Fed’s decision on interest rates. The crypto market eagerly awaits news on CPI data and Inflation Rates.
Crypto traders eagerly await updates from the latest Core CPI data and the US Consumer Price Index (CPI). This data often influences investor sentiment, impacting market dynamics. As such, traders want to know the direction of the crypto market and whether Bitcoin will hit a new all-time high soon.
But before the official release, Wall Street icons such as JPMorgan, Goldman Sachs, Citigroup, Bank of America, Morgan Stanley, and Barclays have already released their CPI estimates.
These institutions estimate the CPI to be around 3.4%. However, other institutions such as Wells Fargo, BNP Paribas, and TD Bank forecast a dip in the inflation rate to 3.3%.
They also expect the monthly inflation rate to drop to 0.1% from 0.3% recorded last month. Additionally, the annual Core CPI is expected to decline to 3.5% from 3.6%. These expert estimates are positive and have triggered an uptick in market sentiment. If the predictions are correct, the market may rally afterwards.
While the US investors wait for this vital data, China has announced its inflation rate is declining.
Crypto Enthusiasts Hope for Federal Reserve Rate Cuts by September
Banks are predicting Fed rate cuts from September 2024; lower CPI data will confirm this. Moreover, Fed Chairman Jerome Powell remains optimistic about the potential recovery of the US economy. He expects three inflation rate cuts, while Fed swaps indicated two.
Meanwhile, the US dollar index (DXY) declined before the release of the CPI and Fed rate data. If the CPI aligns with market predictions, a rate cut in September could boost market sentiment and Bitcoin’s price.
Additionally, the US 10-year treasury yields (US10Y) showed gains this week. Historically, Bitcoin price movements often contrast the US treasury yields. So, the latest gain in treasury yields could indicate a decline for BTC. Traders leverage such drops to fill their portfolios ahead of a rally.
Analysts believe ongoing market movement is carving a healthy structure and a by-the-dip setup that could usher in a rally. BTC has formed an inverse Head and Shoulders pattern on the lower timeframe. As the price of Bitcoin increases, this could translate to a price recovery for the entire market.
Additionally, Open Interest in Bitcoin is rising once more to all-time highs. The total BTC futures open interest is at $35.47 Billion, suggesting that traders are buying the price bottom.
Moreover, Options market data reveals a rebound above $67,500 today, likely to break above $69,000 on Friday. Options traders have bet that Bitcoin will reach highs of $75,000 and even rally to $80,000 by the end of June.
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