Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls
The market forecast reveals annual CPI inflation for June fell to 3.1%, marking the 12th consecutive month of falls. It is the lowest since March 2021. Also, core CPI inflation decreased to 5% from 5.3% in May. However, the monthly CPI for June rises 0.3% against 0.1% last month.
Wall Street analysts also estimated a massive fall in CPI inflation. Bloomberg, Citi, HSBC, UBS, and Nomura expect CPI at 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities, and CIBC estimated inflation to fall to 3.1%. Meanwhile, JPMorgan, RBC, and Visa forecasted annual CPI at 3.2%.
The headline inflation falling to 3-3.2% will bring further upside move in the stocks and crypto markets. JPMorgan’s analysts said inflation is likely to fall below the consensus estimates and compel the Fed to shift to a dovish outlook.
The CME FedWatch Tool shows a 90% probability of a 25 bps hike to be announced during the FOMC meeting on July 26. However, the US dollar index (DXY) fell 2-month low to 102 and expect to continue falling below 101. It will support further upside move in Bitcoin price above $31,000.
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Bitcoin (BTC) and Ethereum (ETH) Set To Rally
Bitcoin and Ethereum prices are set to rally further as the CPI inflation and the US dollar falls. The market sentiment for BTC price hitting $100k has triggered as Standard Chartered revised its Bitcoin prediction higher. Crypto analysts points to Bitcoin price hitting $35000 and Ethereum above $2000.
Popular analyst Michael van de Poppe expects Bitcoin to finally cross $31,500. However, he recommends being cautious on the CPI day. BTC price currently trades at $30800, up 1% from a 24-hour low of $30358.
So far, so good for #Bitcoin.
Always tricky whether we'll continue this move on a day of CPI.
Staircase up, elevator down principle lies around the corner.
14.30, that's the moment to be ready. pic.twitter.com/kqOLGBI4o1
— Michaël van de Poppe (@CryptoMichNL) July 12, 2023
Meanwhile, analyst Ali Martinez noted that ETH price sits on top of stable support between $1800 and $1870, where 3.4 million addresses bought 11.2 million ETH. However, the $2,040 and $2,100 resistance range is more significant as 1 million addresses purchased 27 million ETH. ETH price currently trades at 1888, up nearly 0.5% in the past 24 hours.
Also Read: Bitcoin (BTC) Parabolic Rally To Take Post-Halving Price To $300K, Predicts Crypto Analyst