US CPI Estimates by Wall Street and Crypto Analyst Who Predicted $18K for Bitcoin
While traders are eagerly awaiting the release of the Consumer Price Index (CPI), December by the US Bureau of Labor Statistics for crypto market, the market has already recovered. This move comes as Wall Street analysts and crypto analysts had expected that inflation would decline in December.
Bitcoin price surpassed $18K for first time in 2 months. The 24-hour low and high were $17,337 & $18,268, respectively. Ethereum saw a 7% rally over the last 24 hours, reaching a high of $1408.
CPI Data to continue the crypto market rally?
In a tweet, Michael van de Poppe, a popular analyst, shared his predictions for crypto market. Wall Street economists had expected a fall in the CPI.
According to consensus, the annual U.S. inflation rate likely fell for the sixth consecutive month to 6.5% in Dec. It is the lowest level since October 2021. In November, the CPI fell to 7.1%.
Michael van de Poppe believes that the CPI will drop further but is not expecting a huge drop like other experts. He predicts that the CPI will fall to 6.6% or 6.7%. The crypto market could then experience a correction before continuing its rally.
Bitcoin Price in 1Hr. Source: Michael van de PoppeOn January 11, Michael van de Poppe shared that Bitcoin should have $17.3K. It did. Bitcoin will likely continue to move higher towards $18.5K.
Wall Street Expectations for the Consumer Price Index
Wall Street banks expected a drop of the CPI in December. Economists blamed December’s lower energy prices for the slowdown. From November to December, gasoline prices dropped nearly 12%.
Nomura, Wells Fargo and CIBC expect inflation to be 6.3%. However, Barclays, Bank of America and JPMorgan expect 6.4%, while Morgan Stanley, Morgan Stanley, Goldman Sachs, Barclays and Bank of America have set their expectations at 6.4%. TD Securities, Citi and Credit Suisse anticipate December’s CPI of 6.5%.
Also read: Will the U.S. CPI Data Help Bitcoin Price Break This Key Resistance
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