Major Wall Street Giants Share U.S. CPI Estimates, Will Bitcoin’s Price Rally Further?

US CPI Bitcoin price

On Wednesday, April 12, the U.S. Bureau of Labor Statistics (BLS) is slated to release the Consumer Price Index (CPI) data, which is the most significant indicator of inflation. While traders actively await the release of the CPI print, the crypto market has already recovered to a large extent with Bitcoin’s price breaching the psychological level of $30,000.

General Consensus On U.S. CPI Data

After a jump of 6% in February, it is anticipated that the annual inflation will have increased by 5.2% year-over-year. The core reading, on the other hand, is anticipated to be 5.6%, which is an increase from the earlier reading of 5.5%. Considering the general consensus of the Wall Street heavyweights, the Consumer Price Index is anticipated to be 0.3% on a monthly basis, while the Core CPI is expected to come at 0.4%.

Read More: Is XRP’s Price On The Cusp Of Fresh Rally Following This Major Development?

Additionally, the CPI announcement will act as a major catalyst in determining whether the Federal Reserve will choose to further tighten the monetary policy or not in the United States. Previously, the Fed opted to reduce the interest rate hike by 25 basis points (bps) due to factors indicating that U.S. inflation was cooling down.

Barclays, HSBC, Morgan Stanley, UBS, Wells Fargo and Goldman Sachs all anticipate a decrease in the CPI to 5.1%. On the other hand, JPMorgan,  Citi and CIBC predict that CPI will come in at 5.2%, which is the same as the general consensus. Meanwhile, Bank of America and Bank Of Montreal predict the inflation to come at 5.3% while VISA believes it to be at 5.4%.

Bitcoin’s Price Reaction

The decline in inflation will come as a significant lift for the crypto market, which is already experiencing bullish sentiments over Bitcoin’s recent price swing. In addition, the US Dollar Index (DXY) witnessed a drop today, falling to 102.23 after maintaining its upward trend for the past week. When compared to DXY, the digital asset market tends to move in the opposite way. As a result, a drop in the DXY will be an essential component to monitor in light of the unpredictable market conditions.

As things stand, the price of Bitcoin is currently exchanging hands at $30,152 which represents an increase of 6% over the past 24 hours as opposed to a gain of 7.56% recorded over the previous seven days. It should also be noted that BTC’s technical analysis (TA) indicators at CoinGape’s price tracker presently recommend a “strong buy” position, advising a “buy” at level 17 and a “sell” at level 1 by its moving averages.

Also Read: Janet Yellen Says Inflation In US Still ‘Too High’, Ahead Of CPI Data Release

The post Major Wall Street Giants Share U.S. CPI Estimates, Will Bitcoin’s Price Rally Further? appeared first on CoinGape.

Crypto Feed:
Pratik Bhuyan