Will US CPI Data Affect Bitcoin This Week? What to Expect
Traders are bracing for U.S. Consumer Price Index (CPI) data this week, and all eyes are on how it will impact Bitcoin. The upcoming US CPI data could shape Bitcoin and altcoin trading sentiment this week. But is it all about inflation numbers?
Four Major U.S. Economic Reports to Watch
Four major U.S. economic reports this week could impact Bitcoin, with inflation, jobs, and spending data shaping Federal Reserve policy and market trends. These reports go beyond just CPI and provide a broader picture of the economic landscape influencing the cryptocurrency market.
CPI and Bitcoin Price: A Tightly Coupled Relationship?
A positive CPI print is likely influencing Bitcoin’s next price rise, analysts say. However, the relationship isn\'t always straightforward. Coupled with strong Bitcoin (BTC), and the larger crypto market, have begun a slight pullback as investors brace themselves for the CPI (Consumer Price Index) data due on Wednesday, July.
The Fed\'s Role and Jerome Powell\'s Testimony
Fed Chair Jerome Powell’s testimony is expected to impact cryptocurrency market. The Federal Reserve\'s reaction to the CPI data is crucial, and Powell\'s insights will be closely scrutinized for clues about future monetary policy.
Potential Downside Risk: Hot CPI and PPI
Be warned: "Hot CPI and PPI data this week could likely trigger short-term downside for the S&P 500 (2–5% pullback) and Bitcoin (5–10% decline) due to fears of tighter Fed policy." Prepare for potential volatility if the inflation numbers come in higher than expected.
Macroeconomic Data\'s Influence on Bitcoin
The interest comes amid the significant influence of US macroeconomic data on Bitcoin and crypto markets in general this year, after a dried-up period in 2025. While 2025 might be less volatile, this week, the connection is undeniable.
Ultimately, the US CPI data and subsequent reactions will significantly shape Bitcoin\'s trajectory this week. Keep a close watch on the numbers and be prepared for potential market swings.