Inflation Fears Spook Crypto: Market Dives Before Key US Data

All eyes are on the upcoming announcement of the US Consumer Price Index (CPI) data for June as the crypto market negotiates choppy waters. This much awaited economic indicator has the power to change investor mood, therefore impacting Federal Reserve policy and maybe affecting world financial markets.

Variability In The Market Prior To CPI Announcement

Prior to the CPI release, the cryptocurrency market saw considerable turbulence. Blockchain technology’s most prominent token, Bitcoin, has gone up and down in tandem with investor optimism and pessimism. Traders and experts alike are keeping a careful eye on inflation predictions that may influence the Federal Reserve’s future moves.

Market Mood And Inflation Expectations

With projections ranging from 3% to 3.2% year-over-year, experts at Investing.com find that the consensus among US banks and investment companies is towards a little decrease in inflation. But Morgan Stanley’s outlier projections of a more tenacious inflation rate of 3.5% YoY suggest possible conflict among financial institutions on economic outlooks.

Notable expert Jesse Cohen included in the study stresses the important threshold: Anything beyond 3.5% and you can forget about rate reduction in 2024. This comment emphasises the great stakes connected to the CPI data today, when even little deviations might affect market expectations and cause notable changes in the market.

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