Inflation data will impact today on the price of Bitcoin

Bitcoin (BTC) is waiting for the publication of the consumer price index (CPI) corresponding to July, which the United States Labor Statistics Office (BLS) will announce at 12:30 (UTC).

It is an important fact because the Federal Reserve (FED) takes into account inflation to define its monetary policy.

At the moment, Official inflation in the main global financial power is 2.7% in the last 12 months.

Analysts, in general, foresee that it will rise a monthly 0.1%, carrying the year -on -year variation to 2.8%.

If the data is expected or better, the entity led by Jerome Powell could consider – perhaps in September – a cut in rates, which are currently between 4.25% and 4.50%. Otherwise, if inflation rises more than expected, Fed could harden its monetary policy, a very unfavorable scenario for financial markets, including bitcoin and cryptocurrencies.

This is because when the interest rate falls, the cost of indebtedness also lowers and there is more liquidity in the system, as Cryptonoticia explained. In these contexts, the appetite of the risk of investors, who seek financial instruments to obtain greater returns.

Therefore, BTC usually moves every time these reports are published, because investors react to what they can imply for economic stability.