How CPI and FOMC Reports Could Affect Struggling Bitcoin

Bitcoin (BTC) is currently in a trading range of uncertainty, where it could move very quickly up or down with little warning. New economic data today could spur bold movement from the coin.

The crypto market is slightly elevated today, trading only marginally higher than it did yesterday , and this could be due to anticipation from the incoming US CPI data and FOMC reports today. We will be hearing from Musalem and Bostic from the FOMC today as they speak on the economy as well as when we might see interest rate cuts.

We will also see the release of the US Consumer Price Index, which is expected to be up for the month but down for the year. Unemployment claims data will be releasing as well, expected to show a decrease in claims which would mean some economic improvement.

The market is anticipating a slightly positive showing from these economic reports, with an ease of inflation as sales and the job market improves.

What Does All This Mean for Bitcoin?

Bitcoin is up right now, by 0.56% over the last 24 hours, bringing the price to $58,782 (BTC/USD). Bitcoin has been mostly trending down over the last few weeks, but then has stayed mostly bullish since Monday.

The bullish trend could continue, especially if today’s economic data is positive. However, Bitcoin has been very unstable as of late, and it has been pulled down by Mt. Gox exchange payouts as well as asset dumping from the governments of the United States and Germany. These governments have seized millions of dollars in Bitcoin that has been put into wallets and back into circulation, which has resulted in a lowering of Bitcoin’s value.

Bitcoin could definitely get a boost today, which might be enough to send it back above the $60K level and heading toward $70K. The coin still has to contend with the asset dumping that may continue over the next few weeks, though.