What to Know:
- September’s CPI data release is expected to introduce volatility into the crypto market.
- Ether (ETH) is anticipated to experience larger price swings than Bitcoin (BTC) following the CPI data.
- Overall, the expected volatility remains within typical ranges and doesn’t necessarily indicate a bullish or bearish outlook.
The crypto market, awaiting fresh economic data after a period of limited releases, is set for potential movement as September’s Consumer Price Index (CPI) is released. This inflation figure could trigger price swings, particularly in Ether, while Bitcoin’s reaction may be more tempered due to its store-of-value status. However, the anticipated volatility is considered normal and doesn’t inherently signal a directional shift.
The upcoming CPI data is expected to show a rise in the cost of living, potentially influencing the dollar’s strength. According to analysts at ING, a stronger dollar could curb gains in the crypto market. Conversely, digital asset firm Zerocap suggests that a lower CPI could stimulate bullish sentiment amid ongoing retail activity.
U.S. government shutdown has starved keen market analysts of often crucial data, and a drip feed of macro signals in the wake of the crypto pullback two weeks ago means a lower CPI reading could easily stoke bullish sentiment amid an ongoing retail selloff
Options market data indicates that Ether is expected to experience a larger price movement of around 2.9% following the CPI release, compared to Bitcoin’s expected 1.4%. Volmex Finance’s volatility indices support these expectations, suggesting similar price fluctuations for both assets. XRP and Solana are also showing high implied volatility, translating to potential price moves of approximately 4.7% and 4%, respectively.
Despite the potential for volatility, analysts emphasize that these projected moves do not inherently suggest a bullish or bearish outlook. Technical indicators, such as the Stochastic, hint at a possible price bounce in Bitcoin. This suggests that while short-term fluctuations are likely, the underlying trend for Bitcoin may be stabilizing.
In conclusion, the release of September’s CPI data is poised to inject some activity into the crypto market, with Ether potentially experiencing more pronounced price swings than Bitcoin. While the data could influence market sentiment, the expected volatility is within typical ranges and doesn’t necessarily indicate a change in the overall market direction.
Source: Original article
