The Upcoming CPI Data Could Make Or Break The Cryptocurrency Ecosystem.

Crypto prices have been going through some major upheavals. As a result, the overall environment surrounding cryptos was slightly tense. Even though the prices attempted to bounce back, there was no significant change. The fear/greed index for crypto was still in the red or the fear zone. This shows that a maximum number of investors are either liquidating or are looking to hold out their decision to acquire newer coins.  

As of now, BTC is loitering somewhere near the $96,000 mark. Meanwhile, coins like XLM, IOTA, and other altcoins recorded major dips. For example, IOTA is currently down by 63% from its previous high of 2024, hovering at $0.49. Therefore, the current status of the market is grim. The question remains: how can the upcoming US inflation data affect the overall crypto community?   

Upcoming CPI Data 

February 12th could mark a very important day for crypto enthusiasts in America as US Consumer Price Index (CPI) data will be released. Ahead of the release, Reuters released a piece backed by economists claiming that the headline CPI remained stable at 2.9%. Meanwhile, the Core CPI for January rose to 3.2%. 

As per sources, it is suggested that higher-than-expected inflation will put pressure on cryptocurrency tokens. In the worst-case scenario, it could trigger a bearish movement of pricing and even lead to a bigger liquidation event compared to last week. Meanwhile, a lower figure would lead to a pricing rebound.  

Federal Reserve Chair Jerome Powell said, “With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust it.” He even added that banks will maintain a higher interest rate because of inflation. 

Thus, it is quite apparent that the fate of the crypto community hangs in the balance of Wednesday’s Consumer Price Index report.  Cryptos like BTC, ETH, IOTA, Stellar, and other altcoins can be affected by the data. Follow for more crypto news.