How Bitcoin Traders Are Preparing Ahead of Inflation Data—And What Comes Next

Bitcoin is trading around $111,336, reflecting a decline of 1.8% in the past 24 hours as traders brace for key U.S. inflation data set to influence the Federal Reserve's next interest rate decision. With a significant majority of prediction market users forecasting a drop to $105,000 before any recovery, Bitcoin faces selling pressure between $115,000 and $119,000. Analysts highlight the importance of the pending PCE index, which indicates inflation expectations. A reading above 2.7-2.9% could trigger more hawkish Fed policies, potentially impacting crypto markets negatively. Conversely, a cooler inflation figure might prompt further interest rate cuts, possibly revitalizing Bitcoin and the broader crypto market. Although prediction suggests an 83.4% chance of rate cuts in the upcoming Fed meeting, rising inflation concerns have led to losses across crypto markets recently, indicating market hesitance prior to the inflation report. Experts express cautious optimism, noting Bitcoin's resilience and institutional trust despite recent pressures.

Source 🔗