The cryptocurrency market faced correction, with leading assets declining, ahead of the release of the U.S. inflation data.
The U.S. Consumer Price Index (CPI) report for June this year is expected at 08:30 ET (12:30 UTC). According to Investing.com analyst Jesse Cohen, most U.S. banks and investment firms expect a soft decrease in inflation — between 3% and 3.2%.
Morgan Stanley estimates the June CPI to reach 3.5% year-over-year (YoY), per Cohen’s X post.
If the inflation rate for June comes down to around 3.1%, Cohen says it increases the chances of a Fed rate cut in September. Cohen adds:
“Anything above 3.5% and you can forget about rate cuts in 2024.”
Historically, the cryptocurrency scene faces bearish corrections ahead of the CPI report. This trend has continued.
The global crypto market cap declined 1% over the past 24 hours and now sits at $2.24 trillion. Bitcoin slipped 2% and is hovering around $57,900.
A decrease in the U.S. inflation report can potentially hint at a market-wide bullish momentum for the crypto sector and vice versa.
