Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Bitcoin’s July Blues: Can CPI Data Spark a Rebound?

CoineditionCoinedition2024/07/09 16:37
By:Maxwell Mutuma
  • Bitcoin faces challenges in early July due to delayed ETFs and sell-offs.
  • CPI data release on July 11 could trigger a Bitcoin price rebound if inflation falls.
  • Bitcoin appears oversold, but market sentiment remains cautious.

The start of July has brought unexpected challenges to Bitcoin and the broader cryptocurrency market, deviating from earlier bullish expectations. Events such as the delayed launch of spot Ethereum ETFs on July 2nd and reports of substantial BTC sell-offs by the U.S. and German governments have dampened market sentiment. However, a potential turnaround may be on the horizon as the market focuses on upcoming CPI data expected on July 11.

Crypto analyst CrypNuevo, sharing his insights on social media, highlighted the pivotal role of the CPI data in shaping Bitcoin’s near-term trajectory. He anticipates a possible rate cut based on the upcoming CPI figures and suggests that lower inflation numbers could prompt the Federal Reserve to lower interest rates. Historically, such monetary policy shifts have proven beneficial for Bitcoin prices.

CrypNuevo explained that a rate cut announcement would likely be greeted positively in the crypto market, potentially triggering a significant price increase. The market often prices in future Fed actions, making the CPI release a critical event.

Meanwhile, insights from 10x Research underscore the broader market sentiment, suggesting that Bitcoin has reached initial downside targets around $55,000 and appears oversold in the short term.

Potential catalysts for a market rebound include anticipated macroeconomic tailwinds and the awaited SEC decision on Ethereum ETF approval. However, caution remains for the medium-term outlook amid ongoing market uncertainties.

The upcoming CPI data release on July 11 holds significant implications for both traditional and crypto markets alike. Analysts expect the inflation report to show a decline, potentially from 3.3% to 3.1%, which could signal a favorable environment for lower interest rates and influence market sentiment. Market participants are closely watching these developments amid expectations of further Fed actions to maintain economic stability.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

BlackRock IBIT's fund inflows yesterday hit the highest single-day inflow since March

Cointime2024/07/23 14:07

Bloomberg analyst: The total starting asset amount of the US Ethereum ETF is slightly less than US$10.3 billion

Cointime2024/07/23 14:07

AVAX falls below $30

Cointime2024/07/23 14:07

BlackRock ETHA sees $2.3 million in pre-market volume

Cointime2024/07/23 14:07