Crypto market remains green ahead of June CPI data release
June US CPI data to be released today, and the entire financial industry will finally know how financial regulators will act at the next meeting on key rates. If the inflation data brings us an unexpected “surprise”, digital assets and stock markets will take another hit.
The most recent CPI data greatly exceeded the expectations of the market and became a catalyst for the latest sell-off on the cryptocurrency market that pushed the price of Bitcoin far below $20,000, making the foreseeable future of the digital assets market questionable.
With the further tightening of monetary policy, risky assets like cryptocurrencies or IT stocks are taking a hit as traders and investors shift their funds to more stable options like commodities or bonds.
In July’s case, the expected YoY inflation remains at 8.8%. In June, analysts were expecting a 8.3% acceleration but reached 8.6% instead, which caused turmoil on financial markets and the rally of the U.S. dollar.
Earlier, White House press secretary Karine Jean-Pierre said inflation numbers are expected to be “very high”, prompting mild controversy among investors following the uncertainty and concerns. fears in the cryptocurrency market.
Ahead of the data release, cryptocurrency markets remain anemic as the main narrative on the market remains bearish while most digital assets are extremely oversold, making shorting and betting on the further plunge too risky.
With only a few hours left before the data release, Bitcoin, Ethereum and other cryptocurrencies are showing positive market performance, driving 2-5% growth in the past 24 hours.
