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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 10, 2023 08:50 UTC
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How Will the Crypto Markets React To the CPI Report On 12th July?
Matthew Dixon anticipates a positive crypto market response to the upcoming July CPI data if it shows a fall in inflation.
CPI data has a significant impact on market trends.
Despite a currently bearish crypto market, a decrease in inflation could encourage investors back into riskier assets like cryptocurrencies.
Seasoned crypto trader Matthew Dixon recently shared his insights on the upcoming release of the Consumer Price Index (CPI) data and how it could potentially influence the cryptocurrency market.
Dixon predicts that if inflation decreases as projected, it could trigger an optimistic response from risk assets such as Bitcoin (BTC), Ethereum (ETH), XRP, and other altcoins.
Crypto Market Forecast
Known for his accurate market forecasts, Matthew Dixon drew attention to the imminent release of CPI data for the month of July. Based on the trends shown in June’s data, the expectation is for inflation to fall.
In June, core inflation stood at 5%, while the general inflation rate was marked at 3.1%. Dixon believes that a decrease in these numbers could positively influence the crypto market and potentially uplift the currently bearish sentiment.
The CPI in the United States provides an overall assessment of the average changes in prices paid by urban consumers for a specific basket of market goods. This basket includes food, accounting for 14% of the total weight, energy at 8%, and commodities excluding food and energy contributing 21%.
Interest Rate Implications
Despite the recent signs of a cooling labor market, which remained robust according to June’s report, many believe that the CPI results will likely have minimal impact on the Federal Reserve’s interest rate trajectory.
However, the crypto market remains sensitive to macroeconomic indicators. Currently, the global crypto market is experiencing a downturn, with a 0.8% decrease in the last 24 hours. Notably, Bitcoin, Ethereum, BNB, XRP, Cardano, and Dogecoin are all experiencing a decline. Nonetheless, Bitcoin continues to hold strong, maintaining a value above $30,000, while Ethereum lingers around $1,850.
Hoping for Positivity
If Dixon’s predictions about the CPI turn out to be accurate, the crypto market could witness a wave of positive responses. A decrease in inflation would present a healthier economic outlook, potentially attracting investors to venture back into riskier assets like cryptocurrencies.
This could be the catalyst needed for the crypto market to break free from its current bearish trend and ascend once again.
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