The Producer Price Index (PPI) for July will be released on Tuesday, followed by the all-important Consumer Price Index (CPI) on Wednesday.
Unsurprisingly, investors are gearing up for substantial volatility in the coming days, further exacerbated by the geopolitical tensions in the Middle East. Indeed, Israeli intelligence believes that Hezbollah and the Iranian military could attack Israel as early as August 12th.
Amidst the uncertainty, crypto prices are facing crucial S/R levels which could decide the direction of the crypto market for the next few weeks.
4 Crypto Price Predictions Ahead of CPI
The market appears to be pricing in a 0.2% uptick in the CPI from June, both in the headline figure as well as the core data.
CPI data in line with the expectations will likely be bullish for the market, as it does nothing to dissuade the Federal Reserve from cutting interest rates in February. A hotter-than-expected data could muddy the waters for the central bank, although a 25 bps rate cut could still be expected.
However, substantially lower-than-expected data could further flame the recessionary concerns which were sparked by the weak July jobs report and unemployment rate. Crypto prices could decline sharply, before bouncing back as a 50 bps rate cut then becomes a certainty.
We list 4 crypto price predictions ahead of Wednesday’s CPI data.
Bitcoin Price Could Correct To $53k
The Bitcoin price is showing substantial fluctuations ahead of Wednesday’s CPI.
Owing to the lack of a clear bullish narrative, worse-than-expected CPI data could create substantial selling pressure on BTC. Experts believe that Bitcoin could retest the $53k to $55k zone in such a scenario.
However, the overall trend remains largely bullish as the Fed appears poised to cut interest rates in September. The increased market liquidity could send BTC to a new all-time high before altcoins steal the spotlight.
Ethereum Price Could Reach A New All-Time High In September
The Bitcoin Dominance is showing signs of weakness and could have reached its cycle top earlier this month.
Therefore, Ethereum and the altcoins may take centre stage, paving the way for an altcoin bull run. Investors will closely watch the ETH/BTC pair for any indication of this scenario.
Indeed, ETH/BTC may have formed a local bottom now that Jump Trading has stopped offloading its Ethereum holdings. A breakout above 0.05 now paves the way for a new Ethereum all-time high, potentially as early as September.
Dogecoin Price Could Rally 30% Following A Good CPI Print
The Dogecoin price could be on the cusp of a major upside move, provided that Wednesday’s CPI comes in line with the market’s expectations.
Experts claim that DOGE has formed a bullish cup-and-handle pattern and has broken out of it.
A bullish continuation means that Dogecoin could trade as high as $0.14 in the coming days, up over 30% from its current price of $0.106.
A flip of the $0.14 resistance will pave the way for another 35% rally to $0.19.
New Meme Coins Could Surge In Demand
The September rate cuts will significantly increase the liquidity in the crypto market, a decidedly bullish scenario for new meme coins.
Investors have already printed millions with low-cap tokens and new meme coins during this year’s first-quarter bull run. They will now seek to repeat this phenomenon after September.
In such a scenario, mid-caps such as Popcat, Neiro Ethereum and PLONKE could skyrocket and reach billions in market capitalization. Similarly, experts believe that some new meme coins could see 10x to 100x returns.
For instance, some analysts believe that Pepe Unchained (PEPU) could offer up to 100x returns after its launch.
The new meme coin has already raised over $8.2 million in its presale, which is evidence of its high upside potential. Smart money investors believe that PEPU will see significant retail investment, owing to its native Layer-2 chain which offers low trading costs and high staking rewards.
Similarly, experts are also bullish on Base Dawgz (DAWGZ), a multi-chain meme coin which will go live on Base, Ethereum, Solana, BNB Smart Chain and Avalanche.
Its multi-chain status and innovative concepts such as share-to-earn have led analysts to believe that it could offer 20x returns after its IEO.
