CPI Report Sets Stage for Market Volatility
The upcoming CPI report is expected to have a significant impact on both Bitcoin and U.S. stocks, as investors wait for the Federal Reserve's decision next week.
According to market consensus, the August inflation rate will be around 3.4%, with core inflation (excluding food and energy) increasing by 0.2% monthly, bringing the annual rate down to 2.4% from 2.5% in July.
A cooler inflation print could reignite rate-cut bets and send risk assets higher, while a hotter reading would push yields higher and force traders to cut exposure.
The CPI report arrives as Bitcoin is struggling to reclaim the $80,000 threshold, with the latest market setup showing traders holding back from a decisive move as they wait for the inflation data and the Fed meeting that follows.