The upcoming release of U.S. May Consumer Price Index (CPI) data is expected to significantly impact Bitcoin’s price trajectory, with potential implications for Federal Reserve interest rate policies and broader market sentiment.
Forecasts indicate the May CPI will rise 2.9% year-over-year, reflecting inflationary pressures amplified by ongoing U.S.-China trade tensions. This contrasts with subdued service sector inflation, creating a mixed economic landscape.
A higher-than-anticipated CPI reading could delay Federal Reserve interest rate cuts, potentially driving Bitcoin toward key support levels near $106,000. Conversely, if CPI aligns with projections, Bitcoin may challenge resistance around $110,350.
Traders are advised to closely monitor Federal Reserve communications for signals regarding monetary policy adjustments, which remain pivotal for cryptocurrency market dynamics.