The cryptocurrency market has been carpeted by bearish roar for more than a month now. It started with the Federal Reserve’s first meeting that said there will be an increase of interest rates upto 75% in a month.
This bought the world’s first cryptocurrency on the bearish track and today the currency is struggling hard to hold on to $30,000.
This Bitcoin’s price action has affected other altcoins like Ethereum, Terra (LUNA) among others trading around 2022 lows.
However, the wider cryptocurrency market is expected to find a relief if April US inflation data that is scheduled to be released today, turns out to be favorable.
According to Investing.com, the US Consumer Price Index (CPI) is expected to depict 8.1% reading which is believed to be out today, and if this happens it will be lower than that of March’s reading that stood 8.5%.
The U.S Consumer Price Index (CPI) is the index that measures the price which is paid by consumers for certain goods.
If there is a drop in CPI data, then it says that the US inflation has spiked and the Federal Reserve won’t be increasing the interest rate in order to control inflation. This action will prove largely positive for high risk markets, that also includes crypto.
On the contrary, if the data turns out to be not in favor and is higher than the expected reading, then that will ignite another fresh round of sellings in the market. The reading is expected to be out by 8:30 AM EST.
The cryptocurrencies like Bitcoin, Ethereum and other major cryptos look to be heading little ahead of the CPI data.
The traders are holding off their holding while making large bets as the market could go either bearish or bullish after the reading is out.