Coin Edition -
- Michael Van de Poppe believes lower CPI figures will be positive for Bitcoin.
- The forecast is partly based on the FED’s likelihood of not hiking interest rates.
- CPI measures the change in the price of goods and services purchased by consumers.
The Bitcoin trader and CEO of Eight Global, Michael Van de Poppe, believes if the actual CPI figures turn out to be lower than the actual forecast, then the impact will be positive for Bitcoin (BTC) and users should expect the BTC price to move higher. Michael noted that part of the reason for his opinion is the likelihood of the Federal Reserve not hiking interest rates.
In a tweet, Michael posted the CPI figures to look out for as CPI — 6.0%, CPI MoM — 0.4%, Core CPI — 5.5%, and CPI MoM — 0.4%.
Monthly numbers of CPI coming in today.What to look out for?CPI – 6.0%CPI MoM – 0.4%Core CPI – 5.5%CPI MoM – 0.4%Everything lower than these numbers -> positive for #Bitcoin as we most likely won't be seeing hikes from Powell.— Michaël van de Poppe (@CryptoMichNL) March 14, 2023
The Consumer Price Index (CPI) is an indicator that measures the change in the price of goods and services purchased by consumers. It is an indicator that reflects the level of inflation existing in the market system and usually determines whether the central bank, in this case, the FED, would raise interest rates.
This time around, a prevailing situation in the US banking sector could overshadow the importance of the CPI figure in terms of interest rate decisions. The popular opinion is that the FED would restrain itself from rate hikes to avoid compounding the complicated economic situation.
A respondent to Michael with the Twitter identity Christus opted for a flexible outlook. He noted that the market could experience an equilibrium or something opposite from the general expectation. Christus noted that he does not trust the FED’s chair, Jerome Powell, under the current circumstances.
Since 2023, the CPI m/m figures have come out as expected, posting -0.1% in January and 0.5% in February 2023. Expectations are high this time considering the increased volatility in the crypto market, part of which is caused by the ongoing crisis in the mainstream banking sector.
The CPI is calculated by sampling the average price of goods and services and comparing it with a previous sampling of similar products. It is released every month, about 16 days after the end of the previous month.
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