“Bitcoin Faces Limited Benefit from Latest CPI Data Amid Predictions of Further Price Declines. 
The price of Bitcoin (BTC), which stands at $29,472, has shown slight fluctuations around the $29,500 mark on August 10, as market participants gear up for the release of the latest United States Consumer Price Index (CPI) figures. 
Analysts are cautioning that Bitcoin might not experience substantial gains from the new CPI data, with the possibility of additional price losses looming. 
Preceding the CPI release, BTC’s price movement has exhibited stability, a common occurrence before the announcement of such impactful economic indicators. 
The CPI holds significant importance for the Federal Reserve, influencing decisions on interest rates. The June report from last month marked the lowest figure in a span of two years, leading to widespread anticipation of another decrease in July. 
Michaël van de Poppe, the founder and CEO of trading company Eight, pondered the potential outcomes: “Expectations point to 3.3%, but will this projection materialize, and how will the markets respond?” 
Van de Poppe underscored the chance of a rise in CPI figures, a scenario that could exert pressure on risk assets, including cryptocurrencies, which tend to thrive in an environment of loose Federal Reserve policies. 
JPMorgan Chase and others have raised concerns about the possibility of a resurgence in CPI values. 
Economist Mohamed El-Erian addressed uncertainties surrounding this issue, particularly the influence of recent hikes in energy and food prices, as well as the persistence of service inflation. 
Notably, popular trader Mark Cullen expressed a bearish sentiment, stating, “With the CPI release today, the cryptocurrency market, including Bitcoin, could experience volatility. However, my inclination is towards further price declines.” 
Despite this, market sentiment suggests that expectations for rate hikes lean towards a pause in the next Federal Open Market Committee (FOMC) meeting scheduled for September. CME Group’s FedWatch Tool indicates an over 85% likelihood of this outcome. 
In the context of BTC’s price action, a key support level exists just below $29,000, and insights from Material Indicators indicate potential downward pressure due to a lack of immediate bid support. 
As experts await the release of CPI and Jobs Reports, the focus remains on how these figures will impact the broader narrative of an economic “soft landing” and the subsequent decision on a Fed rate hike in September. The prevailing concern centers on liquidity distribution, which can significantly influence price movements, particularly in areas with limited trading activity.”

Bitcoin Embraces $29.5K Amidst CPI Impact, Debate Emerges on Potential Surge in US Inflation

CoinstelegramEng

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