Bitcoin is experiencing a slight increase in price as investors eagerly await the release of the US Consumer Price Index (CPI) and Federal Reserve Chairman Jerome Powell’s remarks on the economy. The CPI is expected to drop to 3.4% year-over-year, while the core CPI, which excludes volatile food and energy prices, is forecasted to ease slightly to 3.6%. Fed Vice Chair Philip Jefferson believes that interest rates should remain unchanged until there are clearer signs of declining inflation. However, some economists suggest that the Federal Reserve may have to cut interest rates to stimulate the economy or mitigate the negative effects of excessive inflation. Despite the upcoming CPI report, Bitcoin’s options market does not indicate increased volatility, suggesting that traders do not expect a significant surprise in the inflation numbers. This is in contrast to the S&P 500 options market, which shows higher implied volatility for stocks after the CPI report. While a softer inflation print may increase the likelihood of a rate cut later in the year, the Fed considers various factors when making monetary policy decisions. The Fed is expected to adopt a wait-and-see approach and closely monitor data before making any decisions on interest rates. Currently, Bitcoin is trading at $62,017, with a market capitalization of $1.2 trillion and a trading volume of $24 million.
