Bitcoin Prices Swing Wildly Ahead of US CPI Data Release
Bitcoin's price fluctuated wildly last week due to changing expectations about interest rates from the US Federal Reserve. On Thursday, the price surged after Fed member Waller deviated from his usual hawkish stance, sparking a dovish repricing that lowered the probability of a September rate hike.
However, this boost was short-lived as the strong jobs report on Friday triggered a hawkish repricing and pushed the probability of a rate hike back up. This week's key event is the US CPI data release, which will likely influence traders' expectations about interest rates.
A soft or in-line CPI reading could give Bitcoin a boost, according to Waller, who stated that he wouldn't consider a rate hike unless there's a hot CPI. On the other hand, an upside surprise in core monthly inflation data would likely trigger another selloff due to a hawkish repricing.