"Hopefully crypto will go up, if not, when will it go flat."
After Bitcoin (BTC) saw a significant increase past the $30,000 level, the entire crypto market also surged even though the Consumer Price Index (CPI) data has not yet been released by the United States (US) Bureau of Labor Statistics (BLS).
According to Wall Street forecasts, CPI on a monthly basis is expected to be 0.3% while Core CPI is 0.4% while annual inflation may increase by 5.2% year-on-year and the core reading is 5.6%, which is higher than the initial reading of 5.5%.
Meanwhile, Barclays, HSBC, Morgan Stanley, UBS, Wells Fargo and Goldman Sachs believe the CPI will fall at 5.1%, on the other hand JPMorgan, Citi and CIBC expect 5.2% while Bank of America including Bank of Montreal at 5.3% and Visa believes it is at 5.4%.
It is already known that the CPI is an important data for the Federal Reserve (Fed) to determine whether to tighten monetary policy or not, where the Fed previously reduced the increase in interest rates by 25 basis points because there are several factors that show US inflation is recovering.
If the CPI issue that will be released today meets the expectations of 5.1% which is lower than before at the level of 6.0%, then the crypto market has the potential to jump higher as the US dollar will weaken as the Fed will move more towards slowing monetary tightening.
On the other hand, the price of digital assets is also able to plunge drastically if the CPI data report is found to be higher than predicted as the Fed is likely to act to raise interest rates and be the reason for the strengthening of the US dollar.
As of this writing, the price of BTC jumped by 1.43% at $30,271 in the last 24 hours while Ethereum (ETH) slipped 1.04% at $1,895 and Ripple (XRP) gained around 0.18% at $0.51.
