Bitcoin has continued to hover around $30,000 for the past few days, but is falling to $29,449.32 at the time of writing, after the market received US CPI inflation data released at 1:30 p.m. today. GMT. This event was key, says Marcus Sotiriou, an analyst at the UK-based digital asset broker Global block“This gives us a better understanding of whether inflation has already peaked or is only beginning to peak, which is necessary for the Federal Reserve to ease monetary policy and thus drive markets higher, or not.”
Economist Mohamed El-Erian, who accurately predicted nearly a year ago that high inflation in the United States would persist, has now accurately predicted that it has yet to peak, and he doesn’t think it will get worse until June.
He said: “What worries me is that the June monthly print will be worse than the May monthly print. Those who boldly said that inflation has peaked and is falling may have to change their minds.
The Labor Department said Friday the consumer price index rose 8.6% in May from the same month a year ago. So, in fact, consumer inflation in the United States hit its highest level in more than four decades, as soaring energy and food prices pushed prices higher. This now officially marks the highest reading since December 1981.
Economists polled by The Wall Street Journal expected the consumer price index to rise 8.3% in May.
Cathie Wood, CEO of Ark Invest takes the opposite view, as it believes high inventory will drive prices lower over the next few months, leading to a rally in tech and crypto by next month.
Piper Sandler Investment Bank agrees with Cathie, as they released a report suggesting that restocking excess inventory alone will help core inflation decline to 2% from the recent reading of 6.2%.