Crypto Market Eyes US CPI: BTC, Altcoins Rally to Sustain?

Key Insights:

• The crypto market eagerly awaits the US CPI and US PPI inflation figures this week.
• The US CPI is expected to witness a modest increase in June.
• Bitcoin price has touched a new all-time high today, sparking market optimism.

Bitcoin price has taken the crypto market by storm, touching a new all-time high, with the altcoins following suit. BTC price has soared past the $122k levelef. This reflects the shifting focus of investors towards the risk-bet assets like digital currencies.

Community discussions are soaring over a continuing rally in the coming days in the assets’ prices. Market participants eagerly await the crucial inflation figures this week.

For context, the US Consumer Price Index (CPI) inflation is expected to come out on Tuesday, July 15. In addition, another crucial inflation metric, US Producer Price Index (PPI) data, is scheduled to be released on Wednesday, July 16.

So, here we explore the Wall Street expectations for the data and how it may impact the upcoming movements of BTC and altcoins.

Crypto Market This Week: US CPI Inflation In Focus

The crypto market has started the week with great enthusiasm, as evidenced by the recent movements of the top players. Amid this, the investors are waiting for the upcoming US CPI inflation data for cues on the economic health.

According to Wall Street estimates, the US CPI data on Tuesday is expected to spike to 0.3% for June, as compared to 0.1% recorded in the prior month. On a year-over-year (YoY) basis, the inflation is expected to come in at 2.7%, up from 2.4% recorded in May.

On the other hand Core CPI, excludes the food and energy prices. It is expected to come in at 0.3%, up from the 0.1% figure of the prior month. Simultaneously, the Core CPI, on a YoY basis, is also anticipated to increase to 3% in June, as compared to 2.8% in May.

Meanwhile, the US PPI inflation is also expected to increase modestly in June. The economists are expecting the PPI inflation to come in at 0.2%, up from 0.1% recorded in May.

Notably, both the US Federal Reserve consider these figures while deciding their policy rate plans. Having said that, if this set of data comes in hotter-than-expected, it may impact the broader financial sector’s sentiment, let alone the crypto market.

However, it is less likely that these data will impact the US Fed’s rate cut decision much. For context, the CME FedWatch Tool showed that the central bank may keep the interest rates unchanged (93.3% probability) at their July gathering.

Can Bitcoin & Altcoin Rally Sustain?

The digital asset sector has witnessed robust interest from global investors. During writing, the global crypto market cap increased by 3.5% to $3.8 trillion, with the overall trading volume soaring 63% to $188.65 billion.

Simultaneously, Bitcoin price has recorded a massive surge of nearly 4% and exchanged hands at $122,400. On the other hand, the top altcoins have also recorded a robust rally today, with Ethereum price once again soaring past the $3k level.

Now, as all eyes are on the upcoming macro indicators, it might not impact the crypto market sentiment much. For context, despite Trump’s tariffs and other macroeconomic woes, the digital assets have continued to rally.

In addition, the institutional interest is also high, as evidenced by the recent Bitcoin and Ethereum ETF inflow data. Simultaneously, corporations like MicroStrategy, Metaplanet, and others are also betting heavily on Bitcoin.

Considering that, it appears that BTC and altcoins may continue their move to the north in the near future. Despite that, investors should exercise caution as the recent rally might allow some investors to exit the market with robust profits, triggering a short-term pullback in the assets.

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