The cryptocurrency market is closely watching the upcoming Consumer Price Index (CPI) data, which could significantly impact market sentiment. Here's what you need to know ¹:
- *CPI Data*: The CPI report is expected to show a 0.2% month-over-month increase in core inflation, with the headline CPI projected to rise by 0.1%. This could influence the Federal Reserve's decision on interest rates.
- *Market Impact*: A higher-than-expected CPI reading could lead to increased market volatility, potentially affecting cryptocurrency prices. Conversely, a lower reading might boost investor confidence.
- *Investor Sentiment*: The crypto market is currently experiencing risk-off sentiment, with Bitcoin holding around $80,000. Investors are cautious ahead of the CPI data, expecting potential market fluctuations.
Keep an eye on market reactions and adjustments following the CPI report.