No High Inflation Warning From the US Ahead of CPI Print While Crypto Markets Become Volatile

Mixed Signal Expected Ahead of CPI

Bitcoin price braces for the US inflation data as the surging heat around the CPI rates have halted the rally but increased the volatility. The markets surged nominally ahead of the announcement which resembles a similar movement ahead of the revelation of the previous inflation rate.

However, the crypto markets could have mixed reactions as a popular analyst, Daan Crypto Trades, pens down the probable CPI rates.

CPI Guide for today in my opinion:
CPI YoY:
<8.7 Bullish
8.7-9.1 Neutral probably slightly bearish
9.1> Bearish
Core CPI YoY
<5.9 Bullish
5.9-6.1 Neutral
6.1> Bearish
More thoughts below ?
— Daan Crypto Trades (@DaanCrypto) August 10, 2022

The analyst believes that the signals may remain neutral currently as the markets may require time to digest and analyse the impact of new figures. While the CPI could come down year over year, the core may remain elevated as it consists of food & energy prices into account.

Daan Trades also highlighted the trends in recent times as the markets tend to surge with any rates being rolled out which is usually limited to a short-term. As a huge setback follows the surge and the highs are pushed for another couple of months ahead.

Also Read: Ethereum Price Primed to Drop to $1300 While Bitcoin Flashes A Buy Signal

No a Good Time to Trade

The US CPI rates could be out any moment from now and hence the markets are becoming pretty much volatile. The Bitcoin price has been varying by more than 5% since the early trading hours with an acute buying pressure pushing the price higher. While the BTC price marked the lowest level at around $22,600, also smashed the daily highs above $23,700.

Therefore, a huge margin of more than $1000, in the absence of a bull market is pretty unusual. Hence, another analyst, John Wick advised his 93.7K followers to stay away from any type of trade today.

CPI numbers come out today.
This is not a day to trade. Although I will most likely chart the reaction to the CPI announcement.
Take this day to step away from your positions if you’re a position trader. Let the market settle before you jump back in! pic.twitter.com/fv9xmzNlY2
— John Wick (@ZeroHedge_) August 10, 2022

He also said to let off the positions and allow the markets to settle indicating the possibility of huge price variations. Collectively, US CPI numbers could be yet another attempt to disturb the crypto space. But with the markets could be stabilized very soon with the new CPI print rolling out soon!

Also Read: Bitcoin Ready for a Breakout! BTC Price to Hit $28,000 in the Next 10 Days

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Source: https://coinpedia.org/price-analysis/no-high-inflation-warning-from-the-us-ahead-of-cpi-print-while-crypto-markets-become-volatile/