#CryptoCPIWatch The Consumer Price Index tracks how cryptocurrency markets react to the upcoming U.S. Consumer Price Index (CPI) report, a key measure of inflation that affects interest rate decisions made by the Federal Reserve.
Bitcoin (BTC) price dropped below $102,400 amid profit-taking and caution ahead of the Consumer Price Index data release.
Ethereum (ETH) price also fell, trading at around $2,457.
A lower-than-expected Consumer Price Index could bolster hopes for interest rate cuts by the Federal Reserve, potentially lifting cryptocurrency prices.
On the other hand, a higher Consumer Price Index could lead to further declines.
Technical analysis suggests that Bitcoin may be on the verge of a recovery, as the Relative Strength Index shows bullish divergence.
Traders are closely monitoring inflation data and broader macroeconomic indicators, including trade dynamics between the U.S. and China.$SOL
The cryptocurrency market is experiencing a state of "wait and see," heavily influenced by macroeconomic expectations.
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