As the crypto market has been largely stagnant, the crypto community has been looking forward to anything that can bring succor.
The next thing is the upcoming consumer price index (CPI) data announcement coming up today 24 October, which this crypto analyst says is a big day for crypto.
Why CPI data is important
There are certain economic factors that have proven important in determining the price of not just Bitcoin but altcoins as well, one of which is the CPI.
The CPI is an indicator of the level of inflation in the market, based on prices. With a higher inflation, risk assets like crypto could become a luxury but with lower inflation, they become more attractive.
With the announcement due later today, the crypto community is tense and eager to know the outcome, which can either trigger an upward movement or a downward one depending on the CPI.
Investors are however hopeful that the announcement will favor crypto with a lower CPI, which can help the market recover.
In the past, such announcements have had a significant impact on the crypto market, and this time will not be different.
Current crypto market
The market has been moving sideways for almost two weeks now, and Bitcoin has failed to break above the key resistance at $111,000 to $112,000.
As a result, most altcoins have also suffered a similar fate as the market mostly depends on Bitcoin’s movement.
Bitcoin is currently hovering around this resistance zone, which is said to be critical in determining the next direction of its price.
If the CPI comes out positive, it will likely serve as fuel to push through the $112,000 resistance which will be good for altcoins too.
However if it comes out negative, Bitcoin may see much lower prices which will also affect altcoins and postpone the chances of reaching a new rally.
What do you think?
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