Bitcoin and other cryptocurrencies have been trending downwards recently, with attention shifting to upcoming economic data. Both from the US and Europe, this data is crucial for predicting the future movements of Bitcoin and other digital currencies. The awaited data today was the Consumer Price Index (CPI) from the Eurozone. The figures have just been announced.
EU CPI Data Released
The EU CPI data came in at 2.4%. This was below the expected 2.5%. The previous figure was 2.6%. Looking at the announced data, it is evident that the figure is below expectations.
After the data was released, looking at the price of Bitcoin, BTC was trading at $66,500 before the announcement. After the release of the data, we see that the price of BTC is trading at $66,655.
Why Is Lower Inflation Important for BTC?
The decline in inflation is closely monitored by cryptocurrency investors as it may lead to central banks cutting interest rates. Such rate cuts are expected to result in significant capital inflows into the cryptocurrency space.
The potential for capital inflows could lead to Bitcoin reaching six-figure values, as often discussed by many. Particularly, the upcoming halving event this month and the possibility of interest rate cuts provide significant momentum for the cryptocurrency sector.
