- The upcoming data is essential in understanding the inflationary pressure in the economy.
- On October 10, traders will be eagerly watching the publication of the US CPI statistics.
The cryptocurrency market is holding its breath until later this week when the US Consumer Price Index (CPI) data is revealed. After the dismal US job statistics dampened market confidence, investors would be watching the data attentively since it is essential to understanding the inflationary pressure in the economy.
The US Federal Reserve may not drop interest rates by 50 basis points (bps) at their next meeting, as expected, because of stronger-than-expected nonfarm payroll statistics.
Gauging Inflation Rate
On Thursday, October 10, traders will be eagerly watching the publication of the US CPI statistics. In addition, the US central bank uses these numbers to gauge the country’s inflation rate. In short, it is an essential indicator that the US Federal Reserve uses when making decisions on monetary policy.
Forecasts in the market indicate that the consumer price index will fall from 0.2% in August to 0.1% in September. After 2.5% in August, the expected year-over-year inflation rate is 2.3%.
In contrast, inflation is anticipated to decrease to 0.2%, down from 0.3% in the previous month, according to the Core CPI, which does not include energy and food costs. But we expect the Core CPI to stay put at 3.2% for the year.
The falling inflation data, however, may improve market sentiment, which might lead to a rise in the cryptocurrency market. But selling pressure in the market might become much stronger if inflation data reflects a hotter-than-expected level.
The price of Bitcoin has briefly recovered after plummeting to $60,000 level recently. At the time of writing, BTC is trading at $62,660, up 0.82% in the last 24 hours as per data from CMC.
