What's Next For BTC, ETH, BNB, SOL, And XRP As Crypto Market Stumbles!

Crypto prices have climbed for fifth straight days, triggered by declining fears of a U.S. recession following positive jobless claims figures.

The crypto market has shown signs of recovery this week, following a major crash last week. Several altcoins have surged by more than 35% from their weekly lows, and the market has experienced five consecutive days of gains.

Rising U.S. jobless claims and a slight increase in the unemployment rate have set the tone for crypto prices, which are known to follow trends in the broader financial markets.

As the week progresses, the upcoming CPI report on August 14 is being closely watched by the crypto industry. Economists predict a slight decrease in inflation.

The overall CPI is expected to fall from 3.0% to 2.9% in July, and the core CPI, which excludes food and energy prices due to their high volatility, is also predicted to drop from 3.3% to 3.2%.

A decrease in inflation could positively impact Bitcoin and altcoins, considering the Federal Reserve’s rate decisions.

During its July monetary policy meeting, the Fed hinted at the possibility of cutting interest rates in September. Currently, analysts are divided on whether the rate cut will be a modest 0.25% or a larger 0.50%.

The latest predictions from the Federal Reserve Bank of Cleveland indicate an overall inflation rate (headline CPI) of 0.24% for July and a core inflation rate of 0.27%, excluding food and energy prices.

Several banks, including ING Bank and Citi, are predicting a 0.50% rate cut, while others like Goldman Sachs and Societe Generale anticipate a smaller reduction of 0.25%.

When the Federal Reserve lowers interest rates, cryptocurrencies typically experience an increase in value. For instance, in March 2020, during the pandemic, the Fed cut the official cash rate to zero. Subsequently, Bitcoin's price surged, reaching an all-time high of $69,000 in 2021.

If the Fed makes a substantial rate cut this time, we could see Bitcoin price heading toward the $70K mark by the weekend.

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