Global Markets Await US CPI Data as Crypto Bullish Momentum Slows Down

The cryptocurrency market cap worldwide saw a rise of approximately 4.1 percent in the last 24 hours, reaching around $2.83 trillion during the early London session on Tuesday. In a historic moment for Bitcoin, the leading coin closed above $72,000 for the first time on Monday, indicating bullish control. Additionally, the altcoin market, spearheaded by Ethereum (ETH), Binance coin (BNB), Solana (SOL), and XRP supported by Ripple, among others, has been gradually recovering from the bearish market crash of 2022.

Checking the U.S Market
The increased adoption of the cryptocurrency market by institutional investors, particularly Wall Street financial firms, has led to a significant correlation with traditional stocks. Consequently, the cryptocurrency market has displayed heightened volatility during impactful news, especially related to inflation and interest rates in the United States.

After a recent slowdown in interest rate hikes, the US Federal Reserve commissioners have indicated that rate cuts are inevitable this year. Furthermore, despite high interest rates, the unemployment rate in the United States has remained low, indicating a robust market.

However, the recent Consumer Price Index (CPI) in the United States, which tracks changes in the price of goods and services, has signaled unchecked inflation. Jamie Dimon, the CEO of JPMorgan Chase, has advised against rushing into interest rate cuts, as the possibility of a recession in the United States cannot be ruled out.

Later today, the US Bureau of Labor Statistics will release crucial data on the CPI, with expectations of a 0.1 basis point increase in the monthly change and a predicted stagnation at 3.1 percent for the year.

Increased Demand from Crypto Whales
The cryptocurrency market is anticipated to experience heightened volatility in the coming weeks due to impactful news. For example, Ethereum’s highly awaited Dencun upgrade is scheduled for tomorrow. Additionally, the fourth Bitcoin halving is less than 40 days away, historically triggering a macro crypto bull run.

Nevertheless, long-term believers in cryptocurrencies, such as MicroStrategy and BlackRock, have continued to accumulate more coins in anticipation of further gains.

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