#CryptoCPIWatch Markets Brace for CPI Report as Bitcoin Eyes Inflation Trends
The upcoming U.S. Consumer Price Index (CPI) report is set to be a pivotal market event, with analysts projecting a marginal increase in inflation to 2.5%. Bitcoin ($BTC) has already shown sensitivity, briefly surpassing $105,600 before pulling back.
A cooler-than-expected CPI reading could fuel a bullish rally in risk assets, particularly crypto, as it may strengthen expectations of a more dovish Federal Reserve. Conversely, a hotter print may spark volatility, as traders reassess the timing of potential rate cuts. All eyes are now on the Fed’s policy stance and how it interprets the inflation trajectory heading into the second half of the year.
