The US Bureau of Labor Statistics is scheduled to release the US Consumer Price Index (CPI) data for August 2023. In the past, positive CPI reports have led to a rally in the price of Bitcoin (BTC).
The CPI is an important index that measures changes in prices over time. It tracks the monthly price fluctuations of a basket of consumer goods and services purchased by urban consumers.
Investors are eagerly awaiting the release of the August CPI data as it will provide insights into the US Federal Reserve’s decision-making process regarding interest rates. The Federal Open Market Committee (FOMC) meeting, scheduled for September 19-20, 2023, will be influenced by this data.
In July 2023, the CPI for all urban consumers increased by 0.2% (seasonally adjusted) and rose by 3.2% over the past 12 months (not seasonally adjusted). Market expectations for August suggest a 0.6% increase in CPI and a headline inflation rate of around 3.6% year-on-year.
The CME FedWatch Tool, which assesses the likelihood of changes in the Federal target rate, indicates a 93% chance of rates remaining unchanged in September. However, the November meeting shows a 56.4% chance of rates remaining steady.
It remains to be seen whether the price of Bitcoin will experience a rally following the release of the CPI data, assuming the inflation figures align with expectations. Previously, CoinGape reported that BTC faces resistance at the neckline level of $28,168.