Consumer Prices Index, Federal Reserve rates fake BTC star-news.press/wp

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Hongji Feng

author

Hongji Feng

About the author

Hongji is an encrypted and technology correspondent. She graduated from Medll School for Press at North Westren University with a bachelor’s degree and master’s degree. I was previously trained in HTX (Huobi Global), …

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July 4, 2025



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The institutional funds have changed how the encryption is traded. Bitcoin and Ethereum now respond to economic news in ways that reflect traditional assets. Reports on the consumer price index, inflation and interest rates move prices. This transformation means that total economy indicators are no longer optional for encryption traders. They are part of the basic playing book.

This article explains how official data on inflation, central bank prices and coding indicators such as bitcoin dominance can expect market trends. The analysis depends on total versions, encryption plans, and research from large trading offices.

The goal is not to predict the precise moves, but providing a practical guide to understand how the broader economic trends constitute encryption.

Inflation and bitcoin: the grip of the consumer price index on encryption

Inflation began to rise sharply in early 2022. Consumer price indexThe work statistics office was informed, nine percent on an annual basis in June. Bitcoin fell six percent within three days of this version. Investors have moved on the assets of risk, with the expectation of the most compromised financial conditions.

This pattern continued during the years 2023 and 2024. When the consumer price index came in less than predictions, bitcoin often rises. For example, in November 2022, monthly printing was 0.1 percent compared to 0.3 percent expectations. Bitcoin gained Almost four percent in two days.

This repeated reaction indicates that Bitcoin is now trading as technology shares. It does not act like hedging against inflation in the short term. Instead, it follows interest rate expectations. If federal feudal inflation readings pushed the cuts, merchants often revolve in encryption. If the inflation jumps, the merchants come out quickly.

The consumer price index for May 2025 showed a price growth that slows down towards the Federal Reserve. If this trend continues, investors may add risks again. However, if the energy or wages costs raise the inflation higher than expectations, expectations may turn to tightening.

Traders are likely to set parking at Bitcoin and Ethereum based on these versions. CPI versions now work as a short -term price engines.

Federal Reserve rates and excitement: liquidity courses at work

The federal reserve started Raise interest rates In March 2022. that session lasted until mid -2013, when the target range reaches 5.25 to 5.5 percent. Every increase has indicated a more strict liquidity. Ethereum often fell into the days after these ads, reflecting declines in growth focused on growth.

PRICE ETAREUM 2022 (Source: Coinmarketcap)

Ethereum sensitivity of evaluation decisions has become clear in several major moments. After the altitude of June 2022 from 75 basis points, ETH decreased by more than eight percent within 48 hours. The same repeated style in September. On the contrary, when the Federal Reserve stopped in July 2023, the ETH turned away by about five percent during the next three trading sessions.

However, one exception came in March 2023. The collapse of the Silicon Valley Bank caused panic in the financial markets. The Federal Reserve raised interest rates by 25 basis points, but indicated that it may stop soon. This ETH shift helped recover as it rose from less than $ 1,400 to more than 1,800 dollars within three weeks.

These events show the ethereum link for monetary policy. The high rate of high conditions and the pushing eth down. Temporary or mitigating signs often into sharp counterattacks. Ethereum trades like a delicious risk agent in a liquidity market.

Bitcoin’s dominance: Crypto macro scale

Bitcoin hegemony Follow the percentage of the total market value of the bitcoin. When dominance rises, it often reflects a decline in safety. During macro tightening periods, investors reduce exposure to smaller symbols and transport capital to Bitcoin. This behavior reflects wider risks.

American interest rate 2015-2025 (Federal Reserve)

From late 2021 to 2022, bitcoin dominance increased from less than 40 percent to nearly 48 percent. The move came during severe inflation mutations, and an increase in a series of federal reserve category increased as the market declined from speculative assets. Hegemony rose again in mid -2013, before the Federal Reserve indicated a temporary stop, and fell shortly after.

This style supports a familiar cycle. In early risks, bitcoin performs. Once it is stable, the capital rotates to the ethereum, then to the low market value altcoins. The drops in hegemony often distinguish the beginning of these courses. The index can be a sign of changing feelings inside the market.

Bitcoin’s dominance reflects how encryption investors respond to the broader economic transformations. It can work like a scale scale – heading up when uncertainty grows and decreases when conditions prefer to increase risk.

Officer expectations for the next and 90 days

Institutional research during the past year has increasingly linked Macro’s indicators to the performance of digital assets.

In the October 2024 report, Crypto.com Research said: “Economic growth may generally refer to a more suitable environment for encrypted currencies, but the effect will differ according to other market conditions,” Research. They pointed out that “the increase in the link between traditional markets and cryptocurrencies means that the performance of the stock market may provide valuable visions in possible encryption trends.”

In the future, the next 90 days include many total events that may affect the direction of encryption. CPI data is scheduled to precede on July 12, with opinions expected to be compatible with an annual increase of 2.8 percent. The next FOC meeting takes place on September 17, where the markets are currently valid for a 25 basis reduction. The report of the non -cultivated salary statements in August (deserved September 6) and Q2 GDP Revision (August 29) is also highlighted as fluctuations operators.

These dates offer major decision points. The printing of the low consumer price index can enhance the federal reserve mitigation expectations and pay the capital to the assets of risk. On the other hand, the strongest salaries are expected to reduce these expectations. The flow associated with ETF and encrypted reactions will stop this sermon, which enhances the condition that macro indicators are now driving the broader coding.

Conclusion: Macro strategy

Kidney economy indicators now play a measurable role in shaping the trend of the encryption market. Inflation data, central bank policy, and internal standards such as bitcoin dominance showed clear relationships with previous price attacks in both Bitcoin and Ethereum. These signs, when alignment, can provide a visible framework for the interpretation of future movements.

Although there is no model that picks up each turn, tracking the versions of the consumer price index, FOMC decisions, and market reactions, allow a more enlightened location. Macro data will not be replaced by the original analysis of encryption, but it adds a wider context that becomes difficult to ignore. Maintaining the economic evaluation may be useful as any technical scheme.


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2025-07-04 18:00:00

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