#CryptoCPIWatch The cryptocurrency market is currently bracing for the US Consumer Price Index (CPI) data release, which could significantly impact crypto prices. Here's what's happening ¹ ²:
- *CPI Data Release*: The April CPI data is expected to show an annual inflation rate of 2.4%, similar to March's rate. Core CPI inflation, excluding food and energy, is projected to stay at 2.8% year-over-year.
- *Market Impact*: A softer-than-expected CPI reading could boost investor confidence and drive crypto prices up, while a higher-than-expected number might strengthen the US dollar and weigh on crypto prices.
- *Bitcoin's Current State*: Bitcoin recently touched $105,700 before retreating by 3%, indicating potential profit-taking near the $106,000 resistance level. It's currently trading at $102,662.30, down 1.19%.
- *Market Sentiment*: The crypto market has experienced a sharp downturn in the past 24 hours, with total liquidations surpassing $730 million, 73% of which were long positions.
- *Traders' Expectations*: Traders are cautious, expecting the CPI data to introduce further volatility across the digital asset space. A surprise uptick in annual headline CPI inflation could affirm bets that the Fed will hold policy rates steady, potentially causing a fall in crypto prices.
Some key cryptocurrencies to watch are ¹:
- *Bitcoin (BTC)*: $102,662.30
- *Ethereum (ETH)*: $2,453.30, down 1.90%
- *Ripple (XRP)*: Up 4%, leading altcoin gains
- *Cardano (ADA)*: Down 3%
- *Solana (SOL)*: Down 2.8%
- *Binance Coin (BNB)*: Down 1%
