In less than 1 hour, the Consumer Price Index (CPI) data for December will be released by the US Bureau of Labor Statistics, the crypto market remains above $18k. Analysts believe that the price jump follows Wall Street expectations and crypto analysts expect inflation to decrease in December.
Today the BTC price recorded a Bitcoin price break above $18K for the first time in the last 2 months. At this point the price of BTC is trading at the price level of $18,197.90, a jump of 4.42% in 24 hours.
Popular analyst Michael van de Poppe in his tweet today has shared his forecast for the crypto market as Wall Street economists expect a drop in CPI.
According to the consensus, the annual inflation rate in the U.S. likely to slow for the sixth consecutive month to 6.5% in December. It was the lowest since October 2021. The CPI also fell to 7.1% in November.
Michael van de Poppe believes the CPI is likely to fall further, but expectations of a large drop as suggested by other experts are low. He expects the CPI to be recorded at 6.6% or 6.7%
On January 11th, he stated that BTC will remain trading at around $17.3K. Thus Bitcoin "is likely to continue moving higher towards $18.5K."
Wall Street banks expect CPI to decline for December. Economists based their reasoning on lower energy prices in December contributing most to the slowdown. Gasoline costs dropped nearly 12% from November to December.
CIBC, Wells Fargo, and Nomura expect inflation at 6.3%, while Barclays, Bank of America, JPMorgan, Morgan Stanley, and Goldman Sachs have set their expectations at 6.4%. Meanwhile, TD Securities, Citi, Credit Suisse and BMO expect December CPI at 6.5%.
