U.S. Inflation Data Set to Propel Bitcoin’s Ascent

Key Points

1. The CPI data, to be released at 3:30 PM Turkish time, may impact Federal Reserve Chairman Jerome Powell's decisions amid political pressure.

2. Lower-than-expected inflation could boost the cryptocurrency market, with Bitcoin potentially rising to $130,000 if data is favorable.

3. The annual inflation rate for June is expected to be 2.6%, but a figure below 2.4% might accelerate the Fed's timeline for rate cuts.

4. Markets are currently pricing in two rate cuts by the end of the year, which could shift investment flows from stocks and bonds into cryptocurrencies.

5. Political pressure on the Fed includes President Trump's calls for rapid rate cuts and scrutiny over the Fed's $2.5 billion headquarters remodeling costs.