The crypto market is poised for a rebound as Wall Street giants and derivatives traders predict a cooling US CPI and Core CPI, leading to a rise in Bitcoin prices and a broader market recovery.

CPI Data Crucial for Market Sentiment

The upcoming US Consumer Price Index (CPI) and core CPI data will be crucial in determining whether Bitcoin will hit a new all-time high or concerns will prevail. The data is expected to show a cooling CPI inflation rate, with estimates ranging from 3.3% to 3.4%. This positive sentiment could lead to an uptick in the market.

Fed Rate Cuts and Bitcoin Price

Banks have predicted Fed rate cuts starting in September, which could confirm the pivot by the Fed. A cooling CPI inflation and PCE inflation could raise bets for a rate cut in September, potentially lifting Bitcoin prices. The US dollar index (DXY) has dropped ahead of CPI and Fed rate decision, and it is likely to drop below 105 after the key macro events.

Bitcoin Price Rebound and Crypto Market Recovery

Bitcoin tends to dump into FOMC and CPI events, but analysts believe that the market will reverse after these events. The BTC price has formed an inverse head and shoulders pattern, which could bring a recovery in the broader crypto market as BTC rises. Open interests are increasing once again, and options market data indicate a rebound above $67,500 today and to surpass $69,000 on expiry day on Friday. Traders are bullish after this heavy macro week, as per Deribit.

Spot Bitcoin ETFs and Trading Volume

Spot Bitcoin ETFs saw a $200 million outflow amid macro concerns, but the trading volume has increased slightly in the last 24 hours, indicating a rise in interest among traders. The support level is at $66K, a drop below this will negate the bullish scenario in the short term.