There is a new surge of interest in the cryptocurrency market, supporting the bitcoin price and favoring meme coins such as Shiba Inu and Pepe Coin. Investors are hoping for a price increase after weeks of uncertainty. The bitcoin price forecast is based on technical and fundamental analysis ahead of the release of the U.S. Consumer Price Index (CPI) report.
The Consumer Price Index is an important indicator of inflation in the United States, measuring the change in the prices of goods and services purchased by people within the economy.
The U.S. Bureau of Labor Statistics (BLS) calculates and publishes weighted averages of the Consumer Price Index. Markets are eagerly awaiting the release of the May data, which is scheduled for May 15.
A continuation of April’s inflation rate is expected to increase the level of risk in volatile assets such as bitcoin, cryptocurrencies, and equities. Recent price movements foreshadowed a further correction towards the $50,000 level, but support at $56,500 helped keep the bullish trend in place last week.
This week, investors’ attention is also focused on Federal Reserve Chairman Jerome Powell’s public speech, scheduled for May 14. Along with his speech, the markets are expecting the release of the Producer Price Index (PPI).
Powell’s comments could significantly impact the markets, especially when they relate to the Fed’s anticipated decisions. Investors generally do not expect an interest rate cut at the next Fed meeting in June. Attention now shifts to September, with the first-rate cut expected in 2024.
