CPI Data Release Set to Spark Volatility in Crypto Markets

The upcoming U.S. CPI data release on August 12 at 8.30 a.m. ET (6.00 p.m. IST) is being closely watched by crypto markets, with Bitcoin near $63,700 and Ethereum pressing toward $1,900.

Markets are expecting July headline inflation to be 3.4%, which could have significant implications for risk assets. A softer-than-expected CPI would strengthen the case for easier monetary policy and could lower Treasury yields, improving liquidity conditions for crypto markets.

Bitcoin's recent history with CPI releases suggests that it may move significantly after the announcement, potentially breaking out of its current range if inflation comes in below 3.4%.

Ethereum is also expected to be influenced by the CPI release, with a daily close above $2,000 seen as technical confirmation for bulls. XRP's price, meanwhile, is defending the $1 mark and faces significant resistance around $1.10.