An analyst warns that a lower CPI could squeeze Bitcoin short sellers, while a higher-than-expected CPI might lead to a Bitcoin sell-off.
United States inflation data may fuel optimism among Bitcoin traders ahead of an anticipated September rate cut by the Federal Reserve — if inflation lowers as widely expected, according to a crypto analyst.
“Anyone holding short positions is likely to get burned and you could see a classic short squeeze trigger a rally,” Swyftx lead analyst Pav Hundal told Cointelegraph.
Hundal explained that there is “high investor confidence in the market” and that the year-on-year Consumer Price Index (CPI) “won’t surprise to the upside because of the way it’s calculated.”
