CPI and PPI are about to be released, and Bitcoin is facing a real test.
If inflation comes in hotter than expected, pressure on the Fed to raise rates could intensify, pushing the dollar and Treasury yields higher and potentially sending BTC into a further pullback.
If inflation cools, concerns about rate hikes may ease, giving risk assets a chance to rebound.
But don't rush to pick a direction. The key is whether the dollar, Treasury yields, and BTC move in sync after the data is released. If the data is positive but prices fail to rise, it could signal weak buying demand; if the data is negative but prices fail to fall, watch for signs that selling pressure is easing.
Do you think this inflation report will be a catalyst for Bitcoin to break out, or the trigger for another pullback?
If inflation comes in hotter than expected, pressure on the Fed to raise rates could intensify, pushing the dollar and Treasury yields higher and potentially sending BTC into a further pullback.
If inflation cools, concerns about rate hikes may ease, giving risk assets a chance to rebound.
But don't rush to pick a direction. The key is whether the dollar, Treasury yields, and BTC move in sync after the data is released. If the data is positive but prices fail to rise, it could signal weak buying demand; if the data is negative but prices fail to fall, watch for signs that selling pressure is easing.
Do you think this inflation report will be a catalyst for Bitcoin to break out, or the trigger for another pullback?