Bitcoin price teases $30K breakdown ahead of US CPI, FOMC minutes
Bitcoin (BTC) traced $30,000 on April 12 as looming United States macroeconomic data heightened nerves.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near the significant psychological level after overnight lows of $29,875 on Bitstamp.
Consumer Price Index (CPI) for March are due at 2.30pm Eastern time, followed by minutes from last month’s meeting of the Federal Reserve Federal Open Market Committee (FOMC), at which policymakers confirmed a 0.25% interest rate hike.
“Today is US CPI day, and for the first time in a long while, it feels like the market is discounting the significance of this event…,” analytics account Tedtalksmacro wrote in part of Twitter commentary.
Forecast at 5.2% year-on-year versus 6% a month ago, CPI presents a mixed bag — Fed policy remains hawkwish, while pressure from the recent banking crisis has markets unsure as to what further policy tightening is feasible.
Data from CME Group’s FedWatch Tool shows expectations of rate hikes continuing in May, but potentially pausing thereafter.
“We are keeping in mind that the Fed is still largely data dependent and has warned against taking its foot off the pedal early,” trading firm QCP Capital wrote in a market update released on the day.
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QCP continued that the release of the FOMC minutes may have an equally influential impact on cryptoassets thanks to the divergence of the Fed’s position versus market sentiment.
“Investors will closely scrutinize the reasons for the Fed’s downshifting and what they will keep an eye on in terms of the banking sector, liquidity, and overall market performance. While data dependency on inflation will be a critical factor,
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