The FED showed an optimistic outlook for the cryptocurrency market as it was able to control the US inflation rate, which is falling every month. Interest rates have almost plummeted since the beginning of the year, giving a huge boost to the cryptocurrency market. Moreover, most cryptocurrencies, including Star Token and Bitcoin, often consolidate and plummet right before new CPI rates are announced, resulting in massive gains of nearly 4% to 5%.
BTC price triggered a healthy rebound after falling significantly by more than 6% from local highs of $64,500. Is this a bullish signal ahead of the CPI data release? Will CPI data continue to plummet? Can the cryptocurrency market escape the sell-off?
In recent history, drowning CPI rates have been bullish for BTC price and the overall cryptocurrency market. Falling interest rates typically mean lower consumer prices, which can push inflation rates down even further. US inflation indicators will be announced frequently in the future, and the growth rate compared to the same period last year is expected to be 2.3% from the previous 2.5%. If new interest rates are higher than expected, it could have a negative impact on the cryptocurrency market. Moreover, Bitcoin could be very bullish if interest rates remain below 2.3%.
The September CPI rate was 2.5%, consistent with the expected 25% rise in Bitcoin price. Now that the expected exchange rate is below this, the question arises: will BTC price trigger another 25% rise and form a new ATH?
According to market veterans, the CPI rate is expected to fall below 2.3%, which could be very bullish for Bitcoin and the overall cryptocurrency market. However, questions remain whether the bull market can sustain the rally above the bull market or whether it will produce another short-term rally.