Bitcoin Volatility Expected as US CPI Data Looms
Bitcoin's price has been fluctuating around $63,800 after falling more than 2% over the previous two days. The upcoming US July Consumer Price Index (CPI) data release is expected to influence Federal Reserve rate hike expectations and potentially trigger fresh volatility in Bitcoin.
The CPI data could determine whether risky assets like BTC extend their recovery or decline sharply. A hotter-than-expected core CPI reading could strengthen expectations for a more hawkish Fed, supporting safer assets such as the US Dollar (USD) and Treasury yields while weighing on risk-sensitive assets like BTC.
However, traders should be cautious as persistent geopolitical uncertainty could limit the initial reaction and keep BTC vulnerable to heightened volatility following the CPI release. Institutional demand for Bitcoin shows caution with mild bullish sentiment, but investors remain cautious ahead of the US CPI release.