US Inflation Data, Eagerly Awaited by Bitcoin Investors, to be Released Tomorrow

• It was observed that the price of Bitcoin followed a stagnant trend in the process leading up to the recent macroeconomic events in the US.
• Meanwhile, US stocks are moving horizontally on Tuesday in anticipation of inflation data.
• The expectation in annual inflation data is 3.1%. The previous annual inflation was announced as 4.0%.

The US inflation data, which Bitcoin and cryptocurrency investors eagerly await and believe will be decisive for prices, will be announced tomorrow!

US Inflation Data to be Announced on Wednesday

Traders will closely follow the Consumer Price Index (CPI) report, which is scheduled to be released on Wednesday, July 12, 2023, and could potentially lead to a 25 basis point increase. The Federal Open Market Committee (FOMC) of the US Federal Reserve could pave the way for a new interest rate hike when it meets between July 25-26.

It was observed that the price of Bitcoin followed a stagnant trend in the process leading up to the recent macroeconomic events in the US. Federal Reserve Chairman Jerome Powell recently stated that central bank officials expect at least two interest rate hikes by the end of 2023.

Meanwhile, US stocks are moving horizontally on Tuesday in anticipation of inflation data. After the announcement of CPI data on Wednesday, Producer Price Index data is planned to be released the next day.

The expectation in annual inflation data is 3.1%. The previous annual inflation was announced as 4.0%. The expectation for monthly inflation is 0.3% – previous 0.1%. The day after the inflation data, Producer Price Index data will be announced on Thursday. The expectation for annual PPI is 0.4%, while the expectation for monthly PPI is 0.2%. The previous annual PPI was announced as 1.1%, and the monthly PPI was -0.3%.

Inflation is an important index that measures price changes over a period of time. Therefore, markets will look at whether inflation in the US is trending downward. In this context, inflation trends become even more important for Bitcoin price movements, considering recent statements by BlackRock CEO Larry Fink indicating Bitcoin’s possible status as an international asset and a hedge against inflation.

Countdown to the Fed’s Interest Rate Decision

The meeting for the Fed’s interest rate decision will take place on July 25-26, and the interest rate decision will be announced on July 26. There are 15 days left for this decision. According to CME expectations, the probability of a 25 basis point increase in interest rates is currently priced at 92.4%, while the probability of remaining unchanged is priced at 7.6%.

In the previous Fed interest rate decision meeting, participants deemed it appropriate to pause interest rates and kept them unchanged. However, it has been seen in the statements of the Fed Chairman and Fed officials that this pause will not last long.