Bitcoin’s price is experiencing a slight increase as investors await the release of important macroeconomic data, including the US Consumer Price Index (CPI) and remarks from Federal Reserve Chairman Jerome Powell. The CPI inflation is expected to drop to 3.4% year-over-year, while core CPI is forecasted to ease slightly from 3.8% to 3.6%. Some economists believe that the Federal Reserve may need to cut interest rates to stimulate the economy and prevent the negative effects of excessive inflation. However, the expectation of interest rate reductions and moderate inflation could have a positive impact on Bitcoin’s price as investors seek alternative assets. Surprisingly, Bitcoin’s options market does not indicate significant volatility after the CPI release, suggesting that traders do not anticipate major surprises in the inflation numbers. While a softer inflation print could increase the likelihood of a rate cut later this year, the Fed considers various factors in its monetary policy decisions. Bitcoin is currently trading at $62,017, with a market capitalization of $1.2 trillion and a trading volume of $24 million.
