Wall Street estimates for the US CPI inflation and US Federal Reserve’s interest rate decision remain bullish for crypto and stock markets. Top cryptocurrencies Bitcoin and Ethereum are likely to rebound from the crypto market crash last week.
According to the US Bureau of Labor Statistics, the annual CPI inflation cooled to 4.1% in May from 4.9% in April and 5% in March. It is the lowest CPI inflation rate since March 2021. Meanwhile, core inflation also cooled to 5.3% from 5.5%.
Also Read: Bitcoin, Ethereum To Rise Amid Positive US Fed & Inflation Data or Fall As Market Makers Exit
Wall Street giants JP Morgan, Goldman Sachs, and RBC estimated the CPI rate at 4.2%, whereas HSBC, BMO and UBS estimated CPI to come in line at 4.1%. Barclays, Bloomberg, CIBC, Citigroup, Credit Suisse, Morgan Stanley, Visa, and Wells Fargo predict the CPI inflation to cool further to 4%.
Analysts believe the inflation in the US is set for historic drops over the next two months. Investors brace for the big week with key other events, including the US Federal Reserve’s monetary policy decision, as well as interest rate decisions by the European Central Bank and Bank of Japan.
Dow Jones, S&P 500, and Nasdaq futures rise as big money managers and investors slashing bearish bets and buying stocks in anticipation of cooling inflation and the US Fed to “skip” rate hike on June 14. The CME FedWatch Tool shows an 80% probability of the Fed keeping its policy rate unchanged.
Meanwhile, US treasury yields and the US dollar dip further ahead of key CPI data and Fed monetary policy decision, making crypto bullish. US Dollar Index (DXY) fell 0.34% to 103.21 on Tuesday.
Also Read: Largest Shiba Inu Whale Buys 1.5 Trillion SHIB; Price Rebounds
Bitcoin and Ethereum Price To Rise After CPI Data
Bitcoin and Ethereum prices are expected to bounce on macro factors. BTC price jumped 1% in the last 24 hours, with the price currently trading above $26,150. The 24-hour low and high are $25,686 and $26,247, respectively.
The key events today such as a US House hearing on the digital asset industry and the draft stablecoin bill, Hinman documents becoming public, SEC’s Coinbase rulemaking response, and the Binance.US hearing on assets freeze to impact prices.
Meanwhile, ETH price currently trades above $1750. The 24-hour low and high are $1723 and $1757, respectively. Other altcoins such as XRP, Litecoin, and Shiba Inu have also displayed some upside momentum. Terra Classic (LUNC) is leading the rally due to the parity upgrade, with an 11% jump in the last 24 hours.
Also Read: Terra Luna Classic (LUNC) Developer L1TF All Set For v2.1.1 Parity Upgrade
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