The cryptocurrency market faced a correction, with leading assets declining ahead of the release of the U.S. inflation data.

U.S. Inflation Data Release

The U.S. Consumer Price Index (CPI) report for June is expected to be released today at 08:30 ET (12:30 UTC). According to analyst Jesse Cohen, the majority of U.S. banks and investment firms expect a slight decrease in the country’s inflation rate — between 3% and 3.2%.

US June CPI Inflation Estimates

TD Bank: 3.0%
Scotiabank: 3.0%
JP Morgan: 3.1%
Wells Fargo: 3.1%
Citi: 3.1%
Barclays: 3.1%
BNP Paribas: 3.1%
Nomura: 3.1%
Bank of America: 3.2%
Goldman Sachs: 3.2%
Morgan Stanley: 3.5%

On the other hand, Morgan Stanley estimates the June CPI to reach 3.5% year-over-year (YoY).

If the inflation rate for June comes down to around 3.1%, it will increase the chances of a Fed rate cut in September. Anything above 3.5% and you can forget about rate cuts in 2024.

The inflation rate dropped from 3.4% in April to 3.3% in May. This is the lowest level since April 2021. Consequently, the crypto market saw a rebound with Bitcoin (BTC) surpassing the $69,000 mark on June 12, the day the inflation report was released.

Historically, the cryptocurrency market has faced corrections ahead of the CPI report. This trend continued this time as well.

The global crypto market cap declined 1% over the past 24 hours and is currently at $2.24 trillion. Bitcoin slipped 2% and is hovering around $57,900.

A decline in the U.S. inflation report can potentially signal a bullish momentum for the crypto sector and vice versa.

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