The August CPI data is eagerly awaited as it is expected to show a continued slowdown in inflation, a key factor that the Federal Reserve considers for monetary policy decisions.
Bitcoin's price has been volatile ahead of this report, currently trading around $56,500. The crypto market cap has decreased by 1.6% in the past 24 hours, bringing it to $2.08 trillion.
Many analysts believe that the Federal Reserve is likely to announce an interest rate cut during its meeting in September. This potential rate cut could spark a significant rally in the cryptocurrency markets, especially if the CPI data supports a lower inflation narrative.
The article warns of a potential short squeeze if the CPI data prints lower than expected, which could further fuel a rapid increase in Bitcoin's price.
