U.S. inflation data due later on Friday is expected to send ripples across markets, and could possibly break Bitcoin (BTC) out of its narrow trading range.
Bitcoin (BTC) is trading around $30,000- a level it has flitted around for over a month. While any attempts to break above $32,000 are met with resistance, traders also hesitate to let the token fall below $28,000.
But the U.S. consumer price index (CPI) reading for May could change this trend. Most of the BTC’s losses in 2022 are driven by fears of rising inflation, which is likely to spur rate hikes by the Federal Reserve.
Data from MarketWatch shows markets expect a reading of 8.1%, down slightly from 8.3% in April.
How will BTC react to the inflation data?
General consensus in the market is for two main scenarios for BTC. If the data comes in below expectations, it could trigger a relief rally for the token on signs that inflation is indeed cooling. BTC could likely break above its $32,000 ceiling in the short term.
