{"id":22676,"date":"2024-06-12T21:30:44","date_gmt":"2024-06-12T18:30:44","guid":{"rendered":"https:\/\/coinengineer.io\/?p=22676"},"modified":"2024-06-12T17:58:30","modified_gmt":"2024-06-12T14:58:30","slug":"us-cpi-and-fed-meeting-things-to-consider-when-compensating-bitcoin-losses","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/us-cpi-and-fed-meeting-things-to-consider-when-compensating-bitcoin-losses\/","title":{"rendered":"US CPI and Fed Meeting: Things to Consider When Compensating Bitcoin Losses"},"content":{"rendered":"

Bitcoin<\/a> has come under pressure ahead of major events that could affect the Fed’s interest rate cut expectations.<\/p>\n

The dollar index and bitcoin depend on core inflation, housing rents and the Fed’s views on the inflation path. Investment banks expect a decrease in housing rents. A higher-than-expected CPI could shake risk assets. Wednesday could be a decisive day in the markets as the critical US consumer price index report is due to be released just hours before the Federal Reserve meets.<\/p>\n

The Labor Department’s CPI report will be released at 12:30 UTC and is expected to show the cost of living will rise 0.1% in May, following a 0.3% increase in April, according to FactSet. This would keep the annual inflation rate steady at 3.4%. At the same time, core inflation excluding volatile food and energy items is expected to increase by 0.3% in May, the same rate as in April.<\/p>\n

Then, at 18:00 UTC, the Fed is expected to keep its benchmark borrowing cost steady between 5.25% and 5.5% and release its interest rate dot chart. Inflation data is expected to influence dot chart projections and Powell’s post-meeting remarks.<\/p>\n

Here are the important factors that may affect the dollar index and bitcoin:<\/p>\n

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