The Bitcoin and the Altcoin market move with the expectation of a major fluctuation before the US consumer price index (CPI) and manufacturer price index (PPI) to be announced this week. In particular, if inflation rates come above expectations, harsh decreases in the Bitcoin and general crypto market may occur. The announcement of the announcement of these critical data leads to great uncertainty in the markets before the US Federal Bank (FED) meeting, which will take place on March 18-19. The determination of inflation data in Fed’s interest decisions increases the concern in the markets.

How will US inflation data affect the crypto market?

The CPI data for February in the United States will be announced on March 12 and PPI data will be announced on 13 March. In the crypto currency market, investors have an uneasy expectation due to the volatility that this data can create. According to the Reuters survey, February CPI data is expected to increase by 0.3 %on a monthly basis. Wall Street predicts that the annual inflation rate will be 2.9 %.

If the data comes higher than expectations, a sharp sales pressure may occur in the markets. “A CPI data markets will scare markets,“ A CPI data markets will scare markets. The markets still want the Fed to intervene. However, unless inflation and inflation expectations fall, the FED will not be free to take action. ” he said.

FED INTEREST INTEREST DECISION DECISION

Although the FED constitutes a expectation to keep the policy interest rate constant at the upcoming meeting of 4.25-4.5 %, the markets await a total interest rate reduction of 70 basis by the end of 2024. However, if PPI and CPI data are high, the Fed may postpone interest rate cuts or even raise the interest rate hike if an increasing inflationary pressure creates.

“Our policy is currently less restrictive and maintaining economic power. There is no need to rush to change our policy stance. ” he took a cautious attitude about the interest rate reduction.

Will the price of Bitcoin rise or will the decline continue?

Previous inflation data in the United States caused harsh movements in the crypto market. After the CPI data announced in February, Bitcoin declined to $ 94,000 with a 3 %loss. The market value of the total crypto market decreased by 3.3 %to 3.1 trillion dollars. In addition, exits from Bitcoin ETFs are remarkable. A total of $ 409 million output was recorded last week. 21shares ARKB suffered the biggest loss with an output of $ 160 million, while Fidelity’s FBTC fund was seen to have $ 154.9 million.

However, some analysts believe that the current decline movement is the “last month trap” before a great rise. Crypto analyst Crypto Caesar argues that current market sensitivity is caused by the bear trap and Bitcoin could soon enter a new bull period. According to Binance Futures data, 63.13 %of Bitcoin investors have opened long positions. This shows that the bull expectation is still strong in the market. However, the final aspect will be determined by inflation data to be announced and decisions of the FED.