Market analysts at exchange-traded product (ETP) issuer 21Shares say the recent rise in the Consumer Price Index (CPI) is “in line with expectations” and that the rise in inflation is already factored into the macroeconomic data in the March CPI print edition.
According to the February CPI report from the U.S. Bureau of Labor Statistics (BLS), shelter prices rose 0.2% in February, while the food sector of the CPI rose 0.4%, energy rose 0.6%, and the index for all items excluding food and energy rose 0.2%.
CPI inflation data for different sectors of the economy. sauce: Bureau of Labor Statistics
Stephen Coltman, head of macro at 21Shares, said the upcoming CPI data will put even more pressure on the Federal Open Market Committee (FOMC), which sets interest rate policy. he said:
“What matters now is the Fed’s ability to react to future CPI increases. Will the Fed ‘pass through’ this temporary shock, as it did in previous inflation cycles, or will it become more hawkish as a precaution?”
Cryptocurrency markets remain resilient following February’s CPI report, with the Total 3 Market Index tracking the entire crypto market capitalization excluding Bitcoin ($BTC) and Ether (ETH) are down only about 1% from their intraday highs of about $722 billion.
Related: Financial job openings fall to 13-year low as US economy loses 92,000 jobs
what does this mean $BTCWhat is the price?
“Bitcoin is likely to stay within the $68,000 to $74,000 range for the foreseeable future, but a breakout of the $75,000 resistance zone seems imminent,” said Matt Mena, crypto research strategist at 21Shares.
price of $BTC There was little reaction to February’s CPI results, which remained resilient. sauce: TradingView
if $BTC Even if the stock manages to break above the $75,000 level, it could enter a consolidation phase between $75,000 and $80,000 in the medium term, Mena said.
Historical price data shows that $BTC Typically, geopolitical market shocks are followed by a rebound of 15% or more, with prices in the $77,000 to $80,000 range, he said.
The market’s return to these levels could also be “accelerated” if the FOMC resumes rate cuts in 2026, Mena said.
According to the CME FedWatch tool, only 0.6% of traders expected a rate cut from the current 3.50%-3.75% range at the March 18th FOMC meeting.
magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
