Cryptocurrency Market Faces Correction Ahead of U.S. Inflation Data Release
The cryptocurrency market faced a correction as leading assets declined ahead of the release of the U.S. inflation data. The U.S. Consumer Price Index (CPI) report for June is expected to be released today, with analysts predicting a soft decrease in the country’s inflation rate.
According to Investing.com analyst Jesse Cohen, major U.S. banks and investment firms are expecting the inflation rate to fall between 3% and 3.2%. However, Morgan Stanley estimates the June CPI to reach 3.5% year-over-year, which could impact the market sentiment.
If the inflation rate for June comes in around 3.1%, there is a possibility of a Fed rate cut in September. On the other hand, a higher inflation rate could rule out any rate cuts for the rest of the year, according to Cohen.
The cryptocurrency market has historically seen bearish corrections ahead of the CPI report, and this time was no different. The global crypto market cap declined by 1% over the past 24 hours, with Bitcoin slipping 2% and hovering around $57,900.
A decline in the U.S. inflation report could potentially signal a bullish momentum for the crypto sector, while a higher-than-expected inflation rate may have the opposite effect. Investors will be closely watching the CPI data release to gauge the market’s reaction and potential future trends.
