Bitcoin Volatility Expected Ahead of US CPI Data Release

The United States Consumer Price Index report is scheduled for release today at 8:30 a.m. ET, and investors are eagerly awaiting the numbers to determine whether Bitcoin will extend its recovery or face renewed selling pressure.

According to analysts, an annual inflation rate of 3.4% would lead to mixed trading, while any increase above this level could trigger losses for the cryptocurrency sector.

The previous annual inflation was 3.5%, and economists predict that headline inflation will increase by 0.1% per month following a 0.4% decrease in June.

A more robust inflation reading would rekindle rate-hike worries and stress the cryptocurrency market, while a milder inflation result could undermine the US dollar and hedge risk assets like Bitcoin.