The CPI report for tomorrow will be published by the Bureau of Labor Statistics. While stocks have suffered, Bitcoin has been more resilient than the rest. The price of Bitcoin was barely affected Wednesday, as traders awaited the release of key inflation data on Thursday.
At the time of writing, the largest cryptocurrency market cap was $19,142. This is a 0.7% increase over 24 hours.
Tomorrow’s release of the U.S. Bureau of Labor Statistics’ consumer price index (CPI) will be made public. This report measures changes in prices for a range of common consumer goods. This index is used for estimating changes in the economy’s inflation rate.
The outlook could indicate that the Federal Reserve will continue aggressively raising interest rates to try to cool down the economy and reduce rising inflation. This depends on how it looks.
JPMorgan stated today, that such a move could cause the stock market to continue to suffer–as it has done in the past when the central bank raised the cost of borrowing.
When U.S. equity markets take a tumble, so does bitcoin (and all of the crypto market).
The Dow Jones Industrial Average dropped 0.10% or 28.34 points to 29,210.85 and the S&P 500 closed 11.81 points–0.3% to 3,577.03, but the cryptocurrency market appeared more stable.
Ethereum, the second most valuable digital asset, traded at $1,300. This is a 1.4% increase over Bitcoin.
In fact, seven of the top ten largest cryptocurrencies in terms of market capital had made gains as of the writing of this article.
This year, the stock market and bitcoin have been closely related. However, this correlation has been somewhat diminished over the last month according to experts who spoke with Decrypt.
It doesn’t matter if Bitcoin decouples from the stock exchange, it will likely be a volatile trading day as investors try to predict which direction the wind will blow.