Gold fails to take advantage of safe-haven flows due to the dismal demand outlook. Bitcoin and other cryptocurrencies are trying to recover. In this environment, investors’ eyes are on the June consumer price index (CPI) data, which is scheduled to be released on July 13. Investors and traders are wondering how the data will affect the prices of gold and cryptocurrencies.
US CPI data is very important for Bitcoin and cryptocurrencies
Michael van de Poppe, a popular crypto analyst, is one such investor who wants to see how the situation develops. Initially, he claimed that $21,900 for Bitcoin was a crucial level to watch. Now the trader says that if the asset exceeds $22,300, there are not many barriers in front of him. In such a case, he predicts that BTC will make a clean move towards $27,200.
The crypto strategist believes that the June CPI or inflation data report is set to significantly impact the leading crypto. According to his predictions, everyone in the crypto space is bracing themselves for not expecting the report to be positive. But he also notes that the CPI report may not be as bad as people expect.
Bitcoin price 10 thousand dollars or 30 thousand dollars?
He also predicts that Bitcoin must stay between $20,000 and $20,900 for it to be bullish. On the contrary, if the leading coin loses this level due to the negative CPI report, he expects Bitcoin to drop to $19,000 or $19,400 and move down slowly.
Meanwhile, according to a survey, most Wall Street investors believe that Bitcoin will see a decline in the future. Accordingly, he expects BTC to drop to $10,000. On the other hand, the other 40% of investors believe that the price of Bitcoin will reach $30,000. Currently, Bitcoin is trading at $20,473, down 2.31% in the last 24 hours.
“Gold moves up in soft US CPI”
As you follow on Kriptokoin.com, gold cannot benefit from safe harbor flows. According to market analyst Eren Sengezer, it is possible that a soft data could help the yellow metal recover. Gold is struggling to find a good enough reason to bet on a steady rebound.
On Wednesday, the BLS will release June Consumer Price Index (CPI) data. Markets expect annual CPI to rise to 8.7% from 8.6% in May. Core CPI, which excludes volatile food and energy prices, is expected to decline from 6% to 5.9%. The analyst makes the following assessment:
There is room for additional strength for the dollar should inflation data beat forecasts. On the other hand, a soft inflation report is likely to trigger a downside correction in the dollar. In this case, gold is likely to allow a recovery.
“Recovery attempts for gold likely to be limited”
However, the demand outlook for gold is unlikely to improve in the near term. Therefore, market participants are likely to avoid a risk rally. In this context, the analyst makes the following comment:
If inflation data from the US revive hopes for the Fed to take its foot off the accelerator in the last quarter of the year, it wouldn’t be surprising for gold to reverse its direction. However, recovery attempts are likely to be limited.
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