Bitcoin Price Prediction: BTC Near $67,250 Amid Key CPI Data and Fed Rate Announcement

cryptonews.com:

During the late US session, Bitcoin (BTC/USD) is trading near $67,250 as the market braces for a series of major economic events from the Unites States economy. At 12:30, the U.S. will release its Core Consumer Price Index (CPI) month-on-month data, expected to remain steady at 0.3%.

Simultaneously, the overall CPI is anticipated to show a modest increase of 0.1%, down from the previous 0.3%. Year-over-year CPI is forecasted to hold at 3.4%.

These CPI figures are critical as they provide insight into inflation trends. Inflation directly influences the Federal Reserve’s monetary policy decisions. Higher-than-expected inflation could prompt the Fed to maintain or even increase interest rates to curb rising prices, which often impacts investment flows into riskier assets like cryptocurrencies.

Conversely, lower inflation could lead to a more dovish stance, potentially benefiting Bitcoin and other digital assets as investors seek higher returns.

At 18:00, the Federal Reserve will announce its Federal Funds Rate, which is expected to remain unchanged at 5.50%. The Fed’s decision on interest rates is crucial, as it affects borrowing costs and liquidity in the financial system.

Higher rates generally strengthen the U.S. dollar, making it more attractive to investors, which can put downward pressure on Bitcoin prices as funds flow into safer, higher-yielding assets.

Additionally, the Federal Open Market Committee (FOMC) will release its economic projections and statement. These projections, often referred to as the “dot plot,” provide insights into the Fed’s future interest rate trajectory and economic outlook.

Markets will scrutinize these projections to gauge the likelihood of future rate cuts or hikes. A projection indicating more