Bitcoin (BTC) hovered near $29,500 on Aug. 10 as markets braced for a fresh United States Consumer Price Index (CPI) print.
Trader warns of Bitcoin “downside” despite CPI volatility
Data from Cointelegraph Markets Pro and TradingView showed BTC price action stabilizing in the run-up to the CPI release — itself a classic volatility catalyst.
CPI is one of the key elements for the Federal Reserve when deciding interest rate policy. Last month’s June readout was the lowest in two years, with expectations broadly pointing to another drop for July.
“3.3% are the expectations, but are we going to get it and what will the markets do?” Michaël van de Poppe, founder and CEO of trading firm Eight, queried in part of an X post on the topic.
Van de Poppe noted that there appeared to be a chance that CPI could rise, something which would pressure risk assets, including crypto, which favor looser Fed policy.
JPMorgan Chase was among those warning of a re-acceleration in CPI values.
“The major uncertainties concern two issues that were previously seen as unlikely to undermine the July numbers: The direct and indirect price pass-throughs of the recent increase in energy and food prices; and The relative stubbornness of service inflation,” economist Mohamed El-Erian explained in part of the day’s analysis.
“With CPI today, i think Bitcoins and Crypto are going to give us some fun & games, but ultimately, I’m slightly biased to more downside,” popular trader Mark Cullen told X followers.
“With BTC reentering the range & failing to hold 29.5k yesterday, if it can’t immediately get back above & hold, i will compound my short.”
Nonetheless, market expectations regarding rate hikes themselves favored a pause at the next Federal Open Market Committee (FOMC) meeting in September.
According to CME Group’s FedWatch Tool, the odds of that pause were above 85% at the time of writing.
Major BTC buyer support below $29,000
Monitoring resource Material Indicators meanwhile presented liquidity conditions on the Binance BTC/USD order book.
Related: Bitcoin risks 15% dip by October, but $100K is due in 2026 — Analysis
These revealed the potential for snap downside thanks to a lack of bid support immediately below current spot price.
“Not speculating on what the CPI and Jobs Reports are going to look like in the morning. At 8:30am…
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