CPI Report Knocks Bitcoin on Fed Decision Edge
The July Consumer Price Index (CPI) report is about to put the US Federal Reserve in a difficult position, and this uncertainty is affecting markets, including Bitcoin. The CPI report will determine whether the market gets relief or faces another headache.
Crude oil prices jumped on Tuesday due to stalled talks between the US and Iran over the Strait of Hormuz, causing the 10-year Treasury yield to rise to 4.682%. However, reports of progress in Oman-Iran negotiations led to a slight decline in crude prices, with the price falling below $85-$88 resistance area.
The market is waiting for the CPI report to decide on its next move. If the report shows high inflation rates, the Fed may raise interest rates, which would be negative for Bitcoin and other assets. On the other hand, if the report shows low inflation rates, the Fed may not raise interest rates, giving the market a boost.