Bitcoin and Ethereum Price Prediction Ahead of US CPI and ECB Rate Decision

Bitcoin (BTC) price is down by 1.75% today, September 5, to trade at $79,599 at the time of writing. Ethereum (ETH) is also down by 2.45% to trade at $2,455, with these drops coming ahead of the release of the US CPI data on September 11 and a potential rate hike by the European Central Bank (ECB).

Bitcoin and Ethereum Price in US CPI and ECB Rate Decision

The recent US jobs data report, which showed that the US labor market is becoming strong, increased the odds of the Federal Reserve hiking interest rates during the September 16 FOMC meeting to 59%.

Attention has now moved to the release of the US CPI report. Data from MarketWatch shows that investors are expecting US inflation to remain unchanged at 3.4%.

If the CPI comes in lower than the expected 3.4%, it could reduce the odds of the Fed trimming rates and could make President Trump’s argument that the Fed should lower rates stronger.

However, while there is uncertainty about the decision that the Fed will make, the market is pricing in a 100% chance that the European Central Bank (ECB) will hike rates by 25 basis points on September 10.

This hike could push Bitcoin and Ethereum prices lower because hawkish central bank decisions tend to push investors away from risk assets.