The US Consumer Price Index (CPI) data of June 2022 is scheduled to be release today. The White House expects the June CPI figures to be “highly inflated.” It believes that the CPI data will reflect the past because falling energy prices could have helped ease certain inflation worries of Americans who were previously confronted by a significant increase in the price of gasoline and food.
According to a Reuters survey, Economists expect the Consumer Price Index to have “accelerated in June on both a monthly and annual basis, by 1.1% and 8.8%, respectively.”
The high inflation rate could trigger more interest rate hikes from the US Federal Reserve. Experts in crypto believe that higher inflation figures could cause the crypto market to go into a sever decline because of Fed tightening worries. But, if CPI figures surprise the world with signs of the US economy cooling, crypto markets could see an increase.
The Crypto market sharply reacts to the CPI data reveal. The previous update of CPI data (May 2022) on 10th June 2022 resulted in a massive sell-off, and along with crypto, the entire financial market turned red for a week. The top cryptocurrency price has declined by nearly 40% within a week. BTC tumbled from $30,146 to the lowest of $17,601.
In anticipation of rising inflation, the crypto markets have been adjusting in the past few days. Bitcoin’s price, the most popular cryptocurrency, has dropped to $19,496 over the past 24 hours.
May CPI data that revealed an 8.6% inflation rise over a year, the highest since 1981, led the US Federal Reserve to accelerate the interest rate increases during its June policy meeting to 75 bps from the 50 bps that was announced at earlier meetings.
While the prediction among economists about June 2022 CPI data widely varies, most of the speculation suggests a slight relief in an Inflation rise. Although the crypto market has been bleeding for the last one month, positive news regarding inflation could be a breather and result in a significant upswing of cryptocurrency prices.
A Digital Entrepreneur and Co-Founder at CoinFea.com. Pritam’s keen interest in Blockchain and Fintech lead him to establish an independent media publishing house CoinFea.
Pritam loves to generate new ideas and devise feasible solutions to broadly relevant problems.