The US Consumer Price Index release could be a key catalyst

The Consumer Price Index data for February, scheduled to be released at 12:30 UTC, will be closely monitored, as it may influence the Federal Reserve's expectations regarding interest rates. Analysts expect:

Headline Consumer Price Index: 2.9% year-on-year (compared to 3.0% in January).

Core Consumer Price Index (excluding food and energy): 3.2% year-on-year (compared to 3.3% in January).

Monthly increase: 0.3% for both core and headline Consumer Price Index.

A reading below expectations for inflation could lead to:

- Boosting risk assets, including Bitcoin, enhancing expectations for multiple rate cuts by the Federal Reserve.

- A higher-than-expected Consumer Price Index could trigger new selling pressures, dampening hopes for monetary easing in the near term.

Market Outlook: Will Bitcoin price recover?

Singapore-based cryptocurrency trading firm QCP Capital indicated that today's Consumer Price Index data may dictate market direction, stating:

Tonight's Consumer Price Index reading could shape interest rate expectations. Markets now estimate four potential cuts from the Federal Reserve this year, up from just one cut in January.