The crypto community is looking into three key dates this month that could profoundly impact the trajectory of the crypto market and the wider United States macroeconomic environment this year.
On July 13, the monthly Consumer Price Index (CPI) and data relating to inflation will be released to the public. On July 26-27, a decision will be made as to whether to hike interest rates further, while on July 28, the United States Q2 2022 Gross Domestic Product (GDP) estimates will tell us whether the country is in a technical recession.
July 13: Inflation marker, CPI
Micahel van de Poppe, CEO and founder of crypto consultancy and educational platform EightGlobal, told his 614,300 Twitter followers on July 4 that it’s “all eyes on the CPI data next week,” adding bullish forecasts for Bitcoin should it flip above its $20,000 price point.
Blurry chart, but would be looking at $28K for #Bitcoin, if there’s a chance that $20K can be flipped (and in between I’d be monitoring $23K).
All eyes on the CPI data next week and the FED, but would make sense. pic.twitter.com/pcWwEmkoHT
— Michaël van de Poppe (@CryptoMichNL) July 4, 2022
Co-founder of The Crypto Academy, known on Twitter as ‘Wolves of Crypto’, told his followers to keep an eye out for the date, adding that CPI going lower than expected “could be the catalyst for a dead cat bounce” for Bitcoin.
“All eyes on CPI numbers on July 13th. If CPI comes in lower, that will be the catalyst for a dead cat bounce.”
CPI is one of the benchmarks for gauging how inflation progresses by measuring the average change in consumer prices based on a representative basket of household goods and services.
Continued rising inflation could impact demand for cryptocurrencies, with consumers needing to spend more to get by than before.
Interestingly, while Bitcoin was created amid high inflation following the 2008 Global Financial Crisis, and touted as an inflation hedge due to its fixed supply and scarcity, recent years have seen the cryptocurrency perform in line with traditional tech stocks, being less than inflation-proof.
The next scheduled release of the CPI is expected on July 13, 2022, by the U.S. Bureau of Labor Statistics.
According to Trading Economics, the current consensus on the June inflation rate, or CPI, is 8.7%, slightly higher than May’s 8.6%.
July 26-27: Fed interest rate hike
After raising interest rates by 75 basis points in June, one of the most significant monthly increases in 28 years,…
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