TechFlow news, the market generally expects that the Federal Reserve is unlikely to raise interest rates further this year and has started considering possible rate cuts in 2024. On Thursday morning, the U.S. Bureau of Labor Statistics will release the July Consumer Price Index (CPI) report, which Bitcoin bulls hope will bring positive signals regarding U.S. inflation.
Economists predict the CPI's month-on-month increase for July will be 0.2%, matching June's figure. The year-on-year increase is expected at 3.3%, higher than June's forecasted 3%. The unadjusted core inflation rate (excluding food and energy price fluctuations) peaked at 9.1% in June 2022 and stood at 8.5% in July last year.
Core CPI, excluding food and energy costs, is expected to reach 0.2% in July, unchanged from June. The annual core CPI growth rate is projected to decline from 4.8% to 4.7%. Core CPI hit its peak of 6.5% in March 2022, while a year ago in July, the annual growth rate was 5.9%.
To some extent, the Federal Reserve's tightening policy has influenced Bitcoin's price, and a slowdown in such policy could even end one of the factors seen as contributing to Bitcoin's modest recovery.
While lower CPI data released this Thursday may further support this view, in the short term, rate traders have already priced in market expectations that the Fed will not hike rates again this year. CME Group's outlook for next year indicates traders believe the Fed could begin cutting rates as early as February.
