US CPI Expected to Drop to 2.2% Year-on-Year

According to the latest market expectations, the year-on-year rate of the US Consumer Price Index (CPI) is anticipated to decrease from 2.4% to 2.2%. This projection suggests a continued easing of inflationary pressures, which could further bolster market confidence in the decline of inflation. If this forecast materializes, it may influence the Federal Reserve's monetary policy direction, particularly in light of recent tariff changes and the potential for future rate cuts.

Bitunix Analysts have suggested that if the CPI data aligns with expectations and indicates a cooling of inflation, it could provide the Federal Reserve with more room to implement rate cuts. This, in turn, could benefit the cryptocurrency market. However, analysts also caution that tariffs could emerge as a factor suppressing the Federal Reserve's ability to cut rates. In the short term, the support level for Bitcoin (BTC) is identified at $102,000. A drop below this level could see BTC retesting $98,000. Conversely, resistance is noted at $105,000, and a breakthrough above this level could continue the upward trend.