Wall Street Giants Share Their Expectations for Inflation in the US! Will Bitcoin Price Be Affected?

• Today, the US Bureau of Labor Statistics will release the September Consumer Price Index (CPI) data. The annual inflation rate in the US is expected to be 3.6%.
• The CPI announcement is crucial for determining whether the Federal Reserve will further tighten its monetary policy or opt to pause.
• JPMorgan attributes a high probability to the CPI coming in at 3.6%. Analysts predict that this data will give the markets a slight upward momentum.

The US Bureau of Labor Statistics will announce the September Consumer Price Index reports today: What are the expectations of giant companies?

Inflation Reports in the US to Be Announced Today

Today, the US Bureau of Labor Statistics will release the September Consumer Price Index (CPI) data. The annual inflation rate in the US is expected to be 3.6%, showing a 0.1% decrease from the previous month. After dipping to 3% in June, headline CPI increased for two consecutive months. This third consecutive monthly increase in headline CPI is a concerning factor for the stock and crypto markets, delaying Bitcoin’s upward momentum.

Additionally, core inflation, which excludes volatile food and energy, has slowed from 4.3% to 4.1%. These TUEF reports are essential data that will determine whether the Federal Reserve will further tighten or pause its monetary policy. Last month, the Fed did not change interest rates to analyze the impact of recent rate increases on inflation.

JPMorgan attributes a high probability to the CPI coming in at 3.6%. Analysts predict that this data will give the markets a slight upward momentum. The Producer Price Index (PPI) and Core PPI inflation data significantly exceeded expectations on Wednesday.

Goldman Sachs, Bloomberg, Morgan Stanley, Barclays, Nomura, Citi, HSBC, and Wells Fargo all expect the CPI to be 3.6%. National Bank and CIBC predict that the CPI will be 3.7%. However, RBC expects the CPI to drop to 3.5% in September.

In recent days, a few Federal Reserve officials suggested that the central bank might not increase interest rates further from their current 22-year highs. However, after the IMF warned about inflation and lower economic growth in 2024, Fed officials issued harsh statements.

In the meantime, the US Dollar Index (DXY) fell to 105.54, providing support for BTC price to gain upward momentum. Traders are cautious and refraining from trading due to the market’s uncertainty. However, institutional investors started investing in crypto assets last week.

Bitcoin and Altcoins Entering a Correction

A CPI report higher than expected is a negative factor for crypto, while lower-than-expected data should be viewed positively. This month’s core CPI data is significant due to the increase in oil prices caused by the Israel-Hamas conflict.

Before the CPI data, BTC price is experiencing fluctuations and is currently down 2% at the $26,756 level. The 24-hour low and high prices are $26,561 and $27,323, respectively.

On the other hand, ETH price has dropped by more than 2% in the last 24 hours. The price is trading at $1,545, and the 24-hour trading volume has also decreased. XRP price has fallen below the support level and is currently down 2% in the last 24 hours, trading at $0.48.