Bitcoin Price and Ethereum Prediction: Can US CPI Figures Trigger Big Gains?

cryptonews.com:

In the past few days, most major cryptocurrencies, including Bitcoin and Ethereum, have experienced a decline in their prices. As a result, Bitcoin has now fallen below $22,000, continuing its downward trend, and the global cryptocurrency market cap is approaching the $1 trillion threshold.

As the day progresses, the primary focus of the market will continue to be the US CPI figures, which have the potential to cause significant price movements in the cryptocurrency market.

The latest US CPI (Consumer Price Index) figures have the potential to trigger big gains for Bitcoin and Ethereum. As inflation rises, investors often seek out alternative assets like cryptocurrencies as a hedge against inflation. This can lead to an increase in demand for Bitcoin and Ethereum, driving up their prices. 

Additionally, as more people become aware of the potential benefits of cryptocurrencies, we may see an influx of new investors entering the market, which could further boost prices. 

However, it's important to keep in mind that the cryptocurrency market is highly volatile, and there are many other factors that can influence prices, so predicting their exact trajectory can be challenging.

The annual inflation rate in the US is expected to fall for the 7th consecutive month in January by 0.1% to 6.2% from 6.5% in December, marking a decline from last year, and the lowest reading since October of last year. Core inflation decreased to 5.4% this month, which is the lowest it has been since October 2021. The fall in core inflation is probably due to other economic indicators such as a lower unemployment rate and the weakness of foreign currencies. 

However, on an annualized basis, the CPI is likely to have risen 0.5% in January, following a 0.1%