Effect on the Price of Bitcoin (BTC)
On August 10, the US Department of Statistics on Labor will release the most recent Consumer Price Index, or CPI, inflation data. Following the favorable response from the cryptocurrency market to the publication from last month, on-chain data examines the likelihood of a further Bitcoin (BTC) price surge. The influence of the monthly CPI, or consumer price index, statistics on Bitcoin prices has increased as Bitcoin acceptance amongst government and institutional investors rises. The price of Bitcoin increased by 4% in the 48 hours following the last CPI information being released on July 12 to reach a new peak for 2023 of $31,500. Can Bitcoin accomplish the same thing?
How Data on Consumer Price Inflation Affects Bitcoin
Data from the past reveals that Bitcoin has frequently increased when investors anticipate a decline in the CPI or a cautious hike. According to the CPI data reported on July 12, inflation grew just marginally, by 1%, in the previous month. The week before the CPI announcement on July 12 saw a 5% increase in the price of bitcoin, which was followed by a subsequent 4% increase and a new 2023 milestone. This week, a recurring pattern has arisen. The BTC price finished on the ninth of August at $29,900, gaining 4% over August 7, with the most recent CPI data anticipated to be announced on August 10. According to on-chain statistics, cryptocurrency traders were preparing for a further surge of bullish price movement following the date of the August 10 broadcast.
Before the release of the CPI inflation data, Bitcoin transaction volumes doubled.
On-chain data shows that over the course of four consecutive trading days, the number of transactions in BTC denominations has gradually climbed. The BTC Transactions Activity for August 6 was 147,670 transactions, as shown in the graph below. It quickly grew to 302,500 transactions by the end of August 9. This shows a startling 104% surge in trade activity before the release of the CPI inflation data on August 10.
Predicted BTC Price: $32,000 in Focus
The In/Out of Monetary (IOMAP) data shows how existing BTC token owners distributed their purchases within a 20% price range. It demonstrates that the bulls may use the impending CPI Index data release to propel Bitcoin toward $32,000. However, if the price of BTC falls below the $28,000 level, the bears may invalidate the bullish forecast. However, a rebound may be sparked by 1.92 billion addresses that purchased 933,600 BTC for an average of $28,583. However, the BTC price rise could be discredited and returned toward $27,500 if the supporting level fails to hold.