Bitcoin and Ethereum prices break higher before the U.S. Consumer Price Index (CPI) data release for November. Bitcoin (BTC) price jumps a month higher after moving in range since FTX bankruptcy. The Bitcoin price rallied over 3% from a low of $16,944, hitting a high of $17,424. The trading volume rises nearly 15%, indicating limited participation from traders.
Ethereum (ETH) price also rallied over 2%, with the current price trading at $1,285. The 24-hour low and high are $1,246 and $1,283, respectively. The ETH price is moving in the range since the last month. The trading volume rose 25% in the last 24 hours.
Wall Street Expectations Over US CPI Data
The U.S. Bureau of Labor Statistics will release the US CPI data for November today. The inflation rate is expected to slow for a fifth straight month to 7.3% in November, compared to 7.7% in October. Moreover, the Core CPI is expected to edge lower to 6.1% in November from 6.3% in October.
Wall Street expects the CPI data to come in lower as a result of cooling inflation. U.S. stocks jumped Monday, with investors anticipating softer inflation and a smaller interest-rate increase from the Federal Reserve this week.
JPMorgan predicts a 10% rally in stocks if the U.S. CPI comes in at 6.9% or lower. However, JPMorgan expects a CPI reading between 7.2% and 7.4%. While the U.S. stock market showed less correlation with the crypto market in recent times, the lower CPI will benefit the Bitcoin and Ethereum prices.
Goldman Sachs, Morgan Stanley, Credit Suisse, Barclays, Bloomberg, Jefferies, Citi, Wells Fargo, and Nomura expect the CPI data to be 7.2%. Meanwhile, BMO, CIBC, Gurvain Capital, and TD Securities anticipate the CPI number at 7.3%. Therefore, the CPI data can come in lower than the expected 7.3% for November.
Bitcoin Price and Fed 50 Bps Rate Hike
The CPI data will influence the Federal Reserve’s interest rate hike decision the next day. Fed Chair Jerome Powell earlier indicated a slowdown in the rate hike pace in December and the coming months.
According to CME FedWatch Tool, a probability of a 50 bps rate hike is 72.3%. Wall Street also expects the Fed to stick to a 50 bps rate hike in November.
The Bitcoin and Ethereum prices will remain volatile in the week. However, the BTC price breaking above the $17.3k level is significant for a market bottom.
Also Read: Bitcoin Price Crash Incoming After US CPI And Fed Rate Hike?
The post Bitcoin, Ethereum Price Breaks Higher, Wall Street Expectations On US CPI Inflation appeared first on CoinGape.
