Crypto Catalyst Watch: Inflation Data Takes Center Stage as Bitcoin Eyes Price Breakout to $35,000

The projected release of the United States June Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) billed to follow on Thursday is expected to put Inflation Data at the center stage for investors this week. Investors will likely be on the lookout for declines that would excuse the decision of the U.S. Federal Reserve to reverse its course on its intent to push interest rates by 25 Basis Points (BPS).

According to a Coindesk report, a return to monetary tightening is billed to follow the Federal Reserve pausing rate hikes last month. This pause is the first time such a move was implemented since the beginning of this year. At that time, Bitcoin (BTC) was fluctuating severely but traded between $26,000 and $27,000 and investors were expecting the release of the May CPI and the interest rate pause to have an impact on the market value of the leading cryptocurrency by market capitalization.

These metrics amongst others are important components in determining the outlook of the broader market. They would either move or stall the market this week and even for the next month. The Federal Reserve’s decision has played a crucial role in cutting CPI from 9% in August 2022 to the 4% which was recorded in May. Markedly, this does not ignore the fact that it has raised concerns about an overstep that could cast the economy into a steep recession.

After reaching a remarkably high-level last year, the CPI figure now has a sustained downward trend. Based on predictions from analysts, the June index is expected to dip in the mid-3% range. Although Edward Moya, senior market analyst at foreign exchange market maker Oanda believes that it would crest at 2.8%, adding that “pricing pressure would remain throughout the summer.”

In the case of PPI, the index fell to 1.1% annually in May much to the disappointment of analysts who predicted a 1.5% decline. The expectation for June is a 0.4% reading.

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Bitcoin Showing Healthy Signals

While we await these reports this week, it is worth noting that Bitcoin has continued to show healthy signals. Since BlackRock applied to the U.S. Securities and Exchange Commission (SEC) for a spot BTC Exchange Traded Fund (ETF) in mid-June, the broad crypto market has been on a positive momentum.

While there have been a few fluctuations, overall, it appears as though market bulls are not done pushing the nascent asset class in a sustained bullish move.

BTC opened today’s trading day at $30,366 in Asia amidst its wobbly trading volume and market movements. Not deterred by the uncertainty made evident by these yet-to-be-released data, the leading digital asset has hit a new milestone as the number of wallets holding at least one BTC has reached an all-time high (ATH) of 1,008,737 million, based on data from Glassnode.

At the time of this writing, BTC was trading at $30,557.07, showing a 1.56% increase in the past 24 hours. The outcome of the expected metrics may likely push the coin to $35,000 levels in the near term.

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