Today, the announcement of US inflation data is among the important figures eagerly awaited by the cryptocurrency market. Experts indicate that the announced inflation data could cause significant volatility in the markets. Market observers expect both core and headline inflation to be around 0.2% on a monthly basis. However, it is reported that this expectation has largely been priced into the markets.
Higher Than Expected Data Could Move Markets
Economists believe that aside from rents, the inflation issue in the US is largely resolved, and thus, the focus should be on increases rather than decreases. It is considered that unless there is a significant deterioration in inflation data apart from rents, the data will come in line with or below expectations. However, market participants add that an inflation figure slightly higher, such as 0.3% instead of 0.2%, could negatively move the markets in the short term.
Nonetheless, there is a general opinion that concerns about inflation in the markets have diminished. It is stated that inflation expectations have largely been priced in, hence the impact of inflation data on the markets will be limited. Analysts highlight that the biggest fear in the markets right now revolves around recession concerns.
It is noted that the pressure created by inflation in the markets has eased but the possibility of a recession is perceived as a larger threat for investors.
How Could the Announced Inflation Data Affect the Cryptocurrency Market?
The cryptocurrency market also closely follows general market trends. This suggests that higher-than-expected inflation data could lead to a short-term increase in volatility in cryptocurrencies, primarily fueling downward movement. On the other hand, in the long term, it is believed that inflation will have a limited effect on the cryptocurrency market.
Market participants indicate that recession expectations and the corresponding changes the Fed might make in its monetary policy will be more decisive. Therefore, the day when the Fed will make important announcements about its monetary policy and announce its final interest rate decision, September 18, is eagerly awaited.
Currently, Bitcoin (BTC) 
$97,443 is priced at $56,264 with a 1.13% drop in the last 24 hours, while the altcoin king Ethereum (ETH) 
$3,336 is priced at $2,326 with a 0.93% drop.
