Federal Reserve Chairman Jerome Powell is facing significant pressure as important CPI data and the $2.5 billion investment scandal impact the cryptocurrency market.

The situation is heating up as pressure from the President and Congress mounts on the Fed, while new bills in the U.S. House of Representatives could shape cryptocurrency trading and regulation in the near future.

MAIN CONTENT

  • The June CPI could determine the direction of the Fed's interest rate policy and its impact on the cryptocurrency market.

  • The $2.5 billion Fed headquarters renovation scandal adds pressure on Chairman Jerome Powell.

  • This week in the U.S. House of Representatives, important decisions regarding legislation related to cryptocurrency and stablecoins are taking place.

How does the June CPI affect monetary policy and cryptocurrency?

Financial expert Paul Barron believes the June CPI could be a turning point for the Fed, especially if the index falls below 2.4%, opening the door for early rate cuts and supporting liquidity in the cryptocurrency market.

The May CPI data has slightly increased to 2.4% compared to April. Current forecasts indicate that the June CPI could reach 2.6%. A surprising drop in CPI would pave the way for the Fed to cut interest rates, facilitating capital flows into risk assets like Bitcoin and Ethereum. Bitcoin recently broke the $120,000 mark and could reach $130,000 before the end of July according to analysts.

What impact does the Fed headquarters upgrade scandal have?

Jerome Powell is facing criticism over the Fed headquarters renovation project in Washington D.C. with a cost of up to $2.5 billion, nearly $700 million over the initial estimate.

"This is Powell's near-impossible situation: pressure to cut interest rates from the President, threats from opposing factions within the Fed, and the $2.5 billion renovation scandal - all happening right before the CPI data release."

Paul Barron, Financial Analyst, 07/14/2025

Why is this week called the 'Cryptocurrency Week' of the U.S. Congress?

This week, the U.S. House of Representatives is voting on several important bills to regulate the cryptocurrency market, including the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act.

The CLARITY Act aims to establish a transparent legal framework for digital assets, defining the appropriate regulatory authority. The Anti-CBDC Surveillance State Act opposes the government's issuance of a digital USD due to privacy concerns. The GENIUS Act sets protection standards for stablecoins, balancing safety and promoting innovation.

"If the June CPI is lower than expected, the Fed may cut interest rates soon, opening up a great opportunity for cryptocurrencies to benefit from new capital inflows into the market."

Paul Barron, Financial Analyst, 07/14/2025

How will the change in interest rate policy affect Bitcoin and Altcoin?

According to Paul Barron, the additional liquidity from the Fed's rate cuts will not only boost Bitcoin but could also lead to strong growth for altcoins like Ethereum and XRP.

Analysis of the cryptocurrency market shows that new capital tends to prioritize high-risk but high-potential assets, and Bitcoin often leads this trend. Bitcoin's recent price jumps above $120,000 along with forecasts of $130,000 next month are seen as positive signals from major investors and ETH whales.

Summary and predictions for cryptocurrency trends in the near future

Next week will be crucial for the cryptocurrency market as economic data and new laws are released simultaneously, causing significant volatility. The Fed may change its policy, with simultaneous challenges from politics and a major investment scandal putting heavy pressure on Jerome Powell. However, this opens up growth potential for cryptocurrency assets like Bitcoin and altcoins through new capital inflows into the market.

Frequently Asked Questions

  • What is CPI and why does it affect cryptocurrency?
    CPI measures inflation, influencing the Fed's interest rate policy, thereby directly impacting the capital flows into risk assets like cryptocurrency.

  • How could the Fed headquarters renovation scandal affect things?
    The scandal puts pressure on Fed policy, increasing risks in the financial market and causing instability in cryptocurrency investor sentiment.

  • What is the importance of the CLARITY Act and the GENIUS Act?
    These two bills create a clear legal framework, helping to sustainably develop the cryptocurrency and stablecoin markets in the United States.

  • How to track the Fed's impact on cryptocurrency?
    You should closely monitor CPI announcements, Fed meeting decisions, and market developments to seize investment opportunities.

  • How much can Bitcoin increase next month?
    According to expert analysis, Bitcoin could reach $130,000 if the Fed cuts interest rates soon.

Source: https://tintucbitcoin.com/cpi-my-day-thi-truong-tien-so-tang/

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