Market situation: waiting again for the announcement of the monthly inflation rate in the United States

The inflation rate for the month of June (June) of the United States is supposed to be announced tomorrow, Wednesday. If last month’s inflation growth in the country is higher than investors expect, both the traditional markets and the digital currency market may face another wave of selling that could push the price of Bitcoin even lower.

To Report CoinDesk, the Bitcoin market is still recovering from last week’s jump, and yesterday’s candle closed for the fourth day in a row near the key $20,000 level.

As the largest digital currency in the market, Bitcoin has lost 2.85% of its value in the last 24 hours. The price of Bitcoin reached over $22,000 last week; But the market once again failed to move to higher levels. Despite these fruitless efforts, some analysts are more optimistic than before about the recovery of prices.

Alex Kuptsikevich, senior analyst of FxPro, said:

Bitcoin has never before broken below the levels it is currently breaking. Therefore, buyers who are sure of the price growth of this digital currency in the long term, now support it. Another positive sign is the return of prices in other financial markets; where we saw an increase in buying pressure at the beginning of the new half of the year.

It is supposed to be announced tomorrow, Wednesday at 17:00 Tehran time, the inflation rate for the month of June (June) in the United States; A report that shows the success or ineffectiveness of the efforts of the central bank of this country to reduce the growth rate of the price of goods and services in this country. If last month’s inflation growth in the country is higher than investors expect, both the traditional markets and the digital currency market may face another wave of selling that could push the price of Bitcoin even lower.

Simon Peters, an analyst at the EToro brokerage, said that all market participants are now focused on Ethereum and the imminent update of this network; A move that will change the current proof-of-work consensus model to proof-of-stake.

Peters says:

It is impossible to predict how changing the mechanism of the Ethereum network to proof of stake will affect the price of this digital currency; But on paper, the anti-inflation mechanism of the digital currency encourages Ethereum holders to invest rather than sell their holdings.

Ethereum has lost 4.77% of its value in the last 24 hours, and some other popular altcoins have suffered relatively heavy losses, including the 8.85% fall of UniSwap.