Here's How April's CPI Data May Affect The U.S. Dollar and Bitcoin
Since early March, Bitcoin (BTC) has seen increased buying, with prices jumping from around $20k on 11 March, to $28.3k at press time. Nonetheless, the CPI (Consumer Price Index) data for the month of March, due on April 12th, may bring in some fresh volatility for the crypto market. The Federal Reserve will also release the minutes of its latest FOMC (Federal Open Market Committee) meeting. Although markets want to see a faster inflation decline, their view seems to diverge from that of the Fed. Although market sentiment indicated that rate increases will likely not last for very long, the Federal Reserve is still hawkish. As per the data from CME Group’s FedWatch tool, the Fed will likely repeat its 0.25% hike. Furthermore, according to analyst James Choi, the upcoming CPI data will set dollar strength on a three-month freefall. Choi stated, “People seem to have no idea how the $USD $DXY will fall in the next 3 months.” However, Bitcoin (BTC) may have something to gai...