Experts Predict Crypto Prices to Explode to All Time Highs if This Happens
Prices of major cryptoassets could explode higher if US economic data this week indicates that the Federal Reserve could soon be done with their interest rate hikes.
After a strong week for bitcoin (BTC) and many other cryptos last week, traders are now looking for any clues of what could fuel the next leg higher. And with a massive release of important US economic data expected this Wednesday, the positive trigger traders are looking for could come sooner rather than later.
Most important of the data expected on Wednesday will be the Producer Price Index (PPI), which measures the change in prices paid to producers of goods in the US. It differs from the better-known Consumer Price Index (CPI), which is the change in prices paid by consumers, but still gives a good indication of what is happening with inflation.
The number is expected to come in at -0.1, and any reading lower than that could fuel an explosive rally for bitcoin and the broader crypto market.
Earlier this month, the CPI release for December showed that US inflation had fallen to 6.5% annually, down from 7.1% in November. The next CPI release in the US is expected on February 14.
Among those who have already predicted a return to lower inflation is the popular crypto trader and economist Alex Krüger.
Writing on Twitter on Sunday, Krüger reminded his followers that the currently high inflation level is “transitory,” and that inflation will trend lower over the long-term due to technology and an ageing population.
“It should be crystal clear bots will make wage inflation evaporate,” he said.
Lower inflation is the main factor the Fed is looking for before it will stop its current rate hikes, and eventually return to cutting rates. It is believed that lower interest
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