Table of contents

  • Higher-than-expected data could move the market

  • How will the released inflation data affect the cryptocurrency market?

You can also read this news here: Upcoming US inflation data will shake up the market

Today, the release of US inflation data is one of the important data that the cryptocurrency market is eagerly awaiting. Experts say that the released inflation data may cause significant market volatility. Market observers expect the monthly increase in both core and headline inflation rates to be around 0.2%. However, it is reported that this expectation has been largely digested by the market.

Higher-than-expected data could move the market

Economists believe that with the exception of rents, America's inflation problems have largely been resolved, so the focus should be on rising inflation rather than falling. Barring a significant deterioration in inflation data excluding rents, inflation data will be in line with or below expectations. However, market participants added that a slightly higher inflation figure, such as 0.3% instead of 0.2%, could have a negative impact on markets in the short term.

Despite this, the market generally believes that inflation concerns have eased. Some believe that inflation expectations have been basically factored into prices, so inflation data has limited impact on the market. Analysts emphasize that the biggest concern in the market right now is the fear of economic recession.

It is worth noting that the pressure on the market from inflation has eased, but the possibility of a recession is seen as a greater threat to investors.

How will the released inflation data affect the cryptocurrency market?

The cryptocurrency market also closely follows the overall market trends. This means that higher-than-expected inflation data could lead to increased volatility in cryptocurrencies in the short term, mainly exacerbating downtrends. On the other hand, in the long run, inflation is believed to have limited impact on the cryptocurrency market.

Market participants said that expectations of economic recession and the corresponding monetary policy adjustments that the Federal Reserve may make will become more decisive. Therefore, September 18 is the day when the Federal Reserve will make an important statement on monetary policy and announce its final interest rate decision, which is highly anticipated.

Currently, Bitcoin (BTC) is priced at $56,264, down 1.13% in the past 24 hours, while the king of altcoins Ethereum (ETH) is priced at $2,326, down 0.93%.