Inflation Data Determines the Fate of Financial Markets and Bitcoin? Here are the Details!

Jakarta, Pintu News – This week, all eyes are on the release of inflation data, which will determine the Federal Reserve’s monetary policy. Recent reports from crypto exchanges Bybit and FXStreet highlight the importance of this data to market dynamics. Read the details in this article!

Inflation Data as Fed Policy Catalyst

Producer Price Index (PPI) data is scheduled for release on September 11, followed by Consumer Price Index (CPI) data on September 12. According to the report, these figures will greatly influence market expectations of the Federal Reserve’s next move.

General predictions point to an annual increase in CPI from 2.7% to 2.9%. If the figure exceeds expectations, the likelihood of a rate cut will decrease, which could trigger a broad market correction.

Conversely, lower-than-expected inflation data will favor interest rate cuts, which generally benefits risky assets by increasing market liquidity. This shows how important inflation data is in determining the direction of monetary policy.

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Bitcoin and S&P 500 on the Edge

Bitcoin (BTC) is on the verge of an important decision. If the CPI data shows lower than expected inflation, Bitcoin (BTC) could surge past the key resistance level of $117,300 and reach a new record high of $124,500.

However, if the data shows an increase in inflation, Bitcoin (BTC) could fall below the important support level of $107,200, which risks triggering a big drop. The S&P 500 is also not free from the influence of inflation data.

Currently, the index is holding above the pivot level of 6,500 points. The report suggests that the S&P 500 could reach 7,000 points if the inflation report shows a decline, which would extend the equity rally.

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Investment Strategies in the Face of Inflation Data

Investors and traders need to prepare strategies to deal with possible price fluctuations brought about by the release of inflation data. If the Federal Reserve decides to lower interest rates, it could bring more money into the global financial system, which would trigger a rise in the prices of cryptocurrencies and stocks.

However, if inflation continues to rise, it could confirm that interest rates will remain high for a longer time, which will put pressure on the overall market. Therefore, it is important for investors to monitor inflation data and adjust their portfolios accordingly.

Conclusion

This week’s inflation data is more than just an economic update; it is a critical determinant for the Federal Reserve’s short-term monetary policy. With such profound consequences, a deep understanding of the impact of this data is key for investors and traders to make informed decisions in managing their assets.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto Times. Bybit CPI Data is Make or Break for Bitcoin’s P 500. Accessed on September 12, 2025
• Featured Image: Generated by Ai