- The Bureau of Labor Statistics (BLS) will publish the latest US Consumer Price Index (CPI) data.
- Economists expect the data to show that the country's CPI dropped slightly in October.
- Altcoins like Taboo Token, Bitget Token, Orbs, and WorldCoin were among the top-performers.
Cryptocurrency prices were relatively mixed on Tuesday morning as investors waited for the upcoming US Consumer Price Index (CPI) data. After peaking at $37,986 last week, Bitcoin has retreated to $36,400 as the coin takes a breather. Ethereum has also stabilized at $2,050 while BNB and Solana stand at $241 and $53.9.
Some cryptocurrencies are still continued rising. WorldCoin price surged to a high of $2.60 and then pulled back to $2.21. It remains about 42% above the lowest point on Monday. Bitget token surged to a high of $0.5865, which was 45% above the weekend low of $0.4032. The other top-performing cryptocurrencies were Orbs, Taboo Token, and Filecoin.
The next important data to watch will be the upcoming US Consumer Price Index (CPI) scheduled for Tuesday. Economists believe that the country’s inflation drifted downward in October.
Precisely, they believe that the headline CPI dropped from 0.3% to 0.1% in October as the price of gasoline retreated. After peaking at $95 in October, the price of Brent crude oil has dropped to about $82. The West Texas Intermediate (WTI) has dropped to $77.
Economists also believe that the headline CPI dropped from 3.6% in September to 3.2% in October. They see the core CPI, which excludes the volatile food and energy prices is expected to remain at 4.1%.
The latest US inflation data comes a day after the New York Fed published the latest inflation expectation data. This report showed that the median one-year inflation expectation was 3.6%. Inflation expectation for the next three years stands at 3%.
A drop in inflation will be a positive catalyst for Bitcoin and other altcoins like WorldCoin, Orbs, Taboo Token, and Bitget Token. That’s important because of its impact on the Federal Reserve, which has maintained its data dependence.
Recent data have not been positive. For example, the manufacturing and services PMI crashed below the key level of 50. Also, the economy created just 150k jobs in October while the unemployment rate jumped to 3.9%.
In its most recent decision, the Federal Reserve decided to leave interest rates unchanged between 5.25% and 5.50%. Analysts believe that the bank will now leave them intact for a while and then start cutting them in 2024.
