Data on CPI and Core CPI USA referring to the month of April 2024 are available, fundamental for interpreting the crypto markets in the coming months

Inflation data

US inflation data has not been awaited with such trepidation for a long time. With Bitcoin rising rapidly in the first months of 2024, no one had paid particular attention to it, but with the first setbacks and an increasingly uncertain macroeconomic situation, the US CPI becomes a fundamental criterion to see which direction the market can take.

The matter concerns the markets in general, but Bitcoin and Ethereum could be significantly affected. Inflation data will directly influence the choices of the Fed, which has long expressed some doubts about the planned cut in interest rate cuts despite still strong inflation.

According to what sector analysts express, it is still excluded that the Fed will end up raising these rates again, but the situation is still not the best, with worsening data also on the employment side.

Decisive data also for cryptocurrencies

As the announcement approaches, the crypto world has remained fairly stable, with BTC just above $62k and Ethereum just below $3k, and several investors, such as Arthur Hayes, seem convinced that the outlook remains bullish.

Such a vision may ignore these macroeconomic data in the medium term, but it is undeniable that all this attention to the publication of the CPI is decisive for the price action of BTC in the short term. Last month, the CPI reached 3.5% yoy, and the forecast stood at 3.4%.

The newly published data perfectly met expectations:

CPI (yoy): +3.4%
Core CPI (yoy): +3.6%

Given these results, particularly violent movements on the part of Bitcoin are not expected, but the immediate reaction seems to suggest a recovery of optimism on the part of investors despite the still precarious health of the American economy.