The encryption market is expected to suffer from high fluctuations, as the consumer price index and the United States of America are scheduled to be held for this week. If inflation rates are higher than expected, it may lead to a sharp slowdown in the encryption market, which may send bitcoin price to its lowest levels.
It is worth noting that the timing of these reports is very important, as the Federal Reserve meeting precedes from 18 to 19 March, which affects the central bank’s decision on interest rates. Let’s study how the upcoming reports will constitute the Fed Reserve Bank’s decision and possible repercussions for the encryption market.
Surprises of the encryption market for influence: The CPI report in the United States waving
Miscellaneous, CPI and PPI reports are scheduled to be released in the United States this week, with a consumer price index report on March 12 and the next PPI report on March 13. This anxiety has sparked between encryption traders and lovers because these total economic indicators may cause high trap in the market.
According to Reuters, the US consumer price index for February is expected to increase by 0.3 %. Wall Street expects the consumer price index data to come 2.9 %. If the data shows an increase in the inflation rate, it may follow the fall of the encryption market. Bryant Vandronjette, Director of the High Governor at Allspring Global Investments, said,
It is possible to scare the hot CPI market printing. The market still wants to save the federal reserve … until inflation and inflation expectations decrease, the Federal Reserve is assigned.
How will consumer price indicators and PPI affect the nutrition rate?
Interestingly, the Federal Reserve meeting comes after the issuance of US consumer price index data and PPI. These reports can have a significant impact on the central bank’s decision on the interest rate as well as the encryption market.
The Federal Reserve is likely to maintain the standard interest rate of 4.25 % -4.5 % during the next meeting, according to what he said CME Fedwatchtool data. But the market expectations indicate that there is a mitigation on the horizon, as you expect about 70 basis points of discounts by December, as shown in the FED Funds Funts data from LSEG. If PPI and CPI reports unveil the hot inflation rate, the Federal Reserve may choose to maintain interest rates without change or even consider a rise.
Recently, Federal Reserve Chairman Jerome Powell has expressed a honesty position on interest rate discounts. Powell stated,
Our political position is now less restricted than it was, and the economy is still strong. We do not need to be in a hurry to control our position on politics.
Will the price of bitcoin explode or right?
In February, after the issuance of CPI data in the United States, the encryption market witnessed a severe sale. This led to a significant decrease in the market by 3.3 % to $ 3.1 trillion. Since the consumer price index data was characterized by an inflation rate higher than expected, Bitcoin decreased to $ 94,000, a decrease of 3 %.
Given this, the encryption market is expected to face another contraction next week. In addition, Bitcoin’s investment funds were characterized by great outputs, as a total of $ 409 million recorded. The ARKB of 21shares has seen the largest external flow of $ 160 million, followed by FBTC FEDELITY with $ 154.9 million.
However, the Crypto Caesar analyst defines the Habudiya feelings as the last bear trap before entering the bull market.
Meanwhile, analyst Ali Martinez revealed that 63.13 % of futures traders have opened long sites on Bitcoin. This means that merchants are optimistic about the rise of Bitcoin Bullish Bullish in the future.
Nino against Jamal
NYNU V Jamal is an emotional encryption journalist with three years of experience in Blockchain, Web3 and Fintech balls. She has created herself as an attractive and attractive voice in the coded currency and blocks. She added her experience as an assistant professor in English and literature to her endeavor to formulate well and accessible media content.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
partner: