The cryptocurrency market has been covered in a bearish roar for over a month now. It started with the first meeting of the Federal Reserve which said that interest rates would increase by up to 75% in a month.
It bought the world’s first cryptocurrency on a bearish path and is working hard to hold the currency up to $30,000 today.
This bitcoin price action has affected other altcoins such as Ethereum, Terra (LUNA) and traded near 2022 lows among others.
However, the broader cryptocurrency market is expected to find relief if the April US inflation data which is due to be released today turns favourable.
According to Investing.com, the US Consumer Price Index (CPI) is expected to reflect an 8.1% reading which is considered out today, and if it does it will be lower than the March reading which was 8.5%.
The US Consumer Price Index (CPI) is an index that measures the price that consumers pay for certain goods.
If there is a fall in the CPI data, it says that US inflation has risen and the Federal Reserve will not increase the interest rate to control inflation. This action will prove to be largely positive for high-risk markets, which includes crypto.
Conversely, if the data does not turn in favor and exceeds the expected reading, it will ignite another new round of selling in the market. Reading is expected by 8:30AM EST.
Cryptocurrencies like Bitcoin, Ethereum and other major cryptos are moving slightly ahead of the CPI data.
Traders are holding large bets as the market can either go bearish or bullish after the readings are over.