Emre Yumlu 
Bitcoin and cryptocurrency prices were focused on the US inflation data to be released today. The data has been announced; what are the markets expecting?
What Was the US Inflation Data Expectation?
Expectations were that the annual inflation rate would come in at 2.9%. If the data came in above expectations, expectations for rate cuts could be delayed, which could put pressure on risk assets, particularly cryptocurrencies.
At 6:00 PM, Fed Chairman Jerome Powell will deliver his semi-annual monetary policy report to the House Financial Services Committee. Powell’s remarks could provide insights into interest rate policies and inflation targets. In particular, statements suggesting that keeping interest rates high for an extended period could have negative effects on economic growth and employment might create uncertainty in the markets.
So, What Was the Outcome?
The US annual inflation rate was announced at 3.0%, slightly above the expected 2.9%. This led investors to price in less Fed easing. Following the data, investors pushed back expectations for the next Fed rate cut from September to December. This development put pressure on risk assets.
Bitcoin, amid rising inflation and delayed rate cut expectations, fell below the $95,000 level, prompting a more cautious approach from investors. The cryptocurrency market is facing increased uncertainty with rising inflation and interest rates.
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