Crypto Market Awaits US Inflation Data as Bitcoin Surges 3.5%

The crypto market is currently focused on the upcoming US Consumer Price Index (CPI) and Producer Price Index (PPI) inflation figures, scheduled to be released on July 15 and July 16, respectively. These data points are crucial for investors as they provide insights into the economic health and potential policy changes by the US Federal Reserve.

According to estimates, the US CPI is expected to increase modestly to 0.3% for June, compared to 0.1% in the previous month. On a year-over-year basis, inflation is anticipated to rise to 2.7%, up from 2.4% in May. The Core CPI, which excludes food and energy prices, is also expected to increase to 0.3% for June, up from 0.1% in the prior month. On a year-over-year basis, the Core CPI is anticipated to rise to 3% in June, compared to 2.8% in May. Additionally, the US PPI inflation is expected to increase modestly to 0.2% in June, up from 0.1% in May.

These inflation figures are closely watched by the US Federal Reserve as they influence policy rate decisions. If the data comes in hotter than expected, it could impact the broader financial sector's sentiment, including the crypto market. However, it is less likely that these data points will significantly affect the US Fed's rate cut decision, as the CME FedWatch Tool indicates a 93.3% probability that the central bank will keep interest rates unchanged at their July gathering.

Bitcoin's price has surged past the $122,000 level, sparking optimism in the market. This rally has been accompanied by a robust performance from altcoins, with Ethereum's price soaring past the $3,000 level. The global crypto market cap has increased by 3.5% to $3.8 trillion, reflecting the growing interest from global investors.

Despite the upcoming macroeconomic indicators, the crypto market sentiment remains bullish. Institutional interest is high, as evidenced by recent Bitcoin and Ethereum ETF inflows and corporations like MicroStrategy and Metaplanet investing heavily in Bitcoin. However, investors should exercise caution as the recent rally may prompt some to exit the market with profits, potentially triggering a short-term pullback.

Community discussions are rife with speculation about a continuing rally in the coming days. Market participants are eagerly awaiting the crucial inflation figures this week, which could provide further cues on the economic health and potential policy changes. The shifting focus of investors towards risk-bet assets like digital currencies reflects the optimism in the market.