US CPI Report Releases Today: What To Expect

The much awaited U.S. CPI report will be released today, and crypto traders are preparing for a volatile session. With the crypto market already down 0.3% to $2.16 trillion and Bitcoin trading near $62,400, today’s inflation data could decide whether the next move is a rally or another sell off.

June CPI Report

According to Polymarket, June CPI is expected to increase 0.2% from the previous month, lower than the 0.5% rise recorded in May. On a yearly basis, inflation is expected to ease to 3.8%, down from 4.2% in the previous reading.

Investors will also closely watch the Core CPI, which excludes food and energy prices, as it is one of the Federal Reserve’s key inflation measures.

If inflation comes in lower than expected, it could ease pressure on the Fed to raise interest rates again. That would likely improve investor confidence and support Bitcoin and the broader crypto market. 

However, a higher-than-expected reading could increase fears of another rate hike and put pressure on crypto prices.

Fed Officials Are Watching Inflation Closely

Federal Reserve Governor Christopher Waller recently warned that another strong inflation report would be taken seriously.

“If I get another higher one, I’m going to treat that as a signal, not noise.” 

He also stressed that inflation has remained above the Fed’s 2% target for several months and cannot simply be ignored.

Following his comments, the CME FedWatch Tool now shows a 51.6% probability of another Fed rate hike in September, adding more uncertainty to financial markets.

Crypto Market Awaits a Volatile Session

Major cryptocurrencies have dropped ahead of today’s report. As of now, Bitcoin is trading near $62,400, while Ethereum, XRP, and several other large-cap tokens have also posted losses over the past 24 hours.

Apart from inflation, investors are also keeping an eye on rising U.S.-Iran tensions, which could keep inflation elevated and influence the Federal Reserve’s policy outlook.