#CryptoCPIWatch The cryptocurrency market is eagerly awaiting the US Consumer Price Index (CPI) data release, which could significantly impact market sentiment and volatility. Here's what you need to know ¹ ² ³:
- *CPI Data Expectations*: The CPI is forecast to rise at an annual rate of 2.4% in April, unchanged from March. Core CPI inflation, excluding food and energy, is expected to stay at 2.8% year-over-year.
- *Market Impact*: A softer-than-expected CPI reading could boost investor confidence and lead to rallies in cryptocurrencies, while a surprise uptick could affirm bets that the Fed will hold policy rates steady, triggering a risk-off sentiment.
- *Bitcoin's Current State*: Bitcoin recently touched $105,700 before retreating by 3% to $102,662.30, indicating potential profit-taking near the $106,000 resistance level.
- *Trader Sentiment*: Analysts believe the $100,000 mark remains a critical psychological and liquidation level, with over $3.4 billion in long positions exposed to downside risk if selling pressure continues.
- *Potential Outcomes*:
- *Bullish Scenario*: A softer CPI print could reignite bullish momentum, driving prices higher.
- *Bearish Scenario*: A higher-than-expected CPI number might strengthen the dollar and weigh on crypto prices.
*Key Market Metrics to Watch*:
- *Bitcoin Price*: $102,662.30 (down 1.19% on CoinMarketCap)
- *Market Capitalization*: $2.16 trillion
- *24-hour Trading Volume*: $64.27 billion
- *Liquidations*: Over $730 million in leveraged positions were wiped out across crypto markets in the past 24 hours, with 73% being long positions
