Bitcoin falls as crypto markets prepare for US CPI data and FOMC meeting on a 'frantic macro Wednesday'

bitcoin fell as traders prepared for Wednesday's US inflation data and an FOMC meeting that will be pivotal for the crypto asset's outlook.

“The stage is set for a frenetic macro Wednesday, with May CPI data and the Fed's interest rate decision poised to move the market,” K33 Research said in a June 11 note.

crypto Market Turns Red Ahead of FOMC Meeting and CPI Data

btc is trading down a fraction of a percent at $67.471 at 5:16 a.m. EST on trading volume that fell more than 4% to $29.4 billion. The market capitalization of the cryptocurrency industry is also down 0.3% in 2.45 trillion dollars amid a pause before macro Wednesday begins in the United States.

Six of the other ten largest cryptocurrencies by market capitalization also fell and the rest showed anemic gains amid anxiety. on CPI data and the Federal Open Market Committee (FOMC) meeting to discuss interest rates.

ethereum (eth) price fell to a three-week low of $3,448, taking its weekly decline to 7.4%. BNB (BNB), Solana (SOL), and Dogecoin (DOGE) have also seen double-digit drops this week.

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”14.039634146341″>

It's a big week for the markets with new CPI data and FOMC interest rate decisions coming tomorrow.twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin and cryptocurrencies are almost always correct before the event and return to the upside afterward.

The same price action occurred in the previous months.

—Michaël van de Poppe (@CryptoMichNL) twitter.com/CryptoMichNL/status/1800464239120806392?ref_src=twsrc%5Etfw”>June 11, 2024

Markets expect FOMC to keep interest rates unchanged

All eyes are now on Federal Reserve Chair Jerome Powell and the FOMC committee to see how they react to May's inflation data and whether this prompts a rethink of the Fed's hawkish stance.

In April, the US consumer price index (CPI) rose 0.3% month-on-month, while annual inflation rose 3.4%. The core inflation index, which covers all items except food and energy, also rose 0.3%.

According to the CME FedWatch ToolMost analysts expect the Federal Reserve to leave interest rates unchanged at 5.25% to 5.5%.

U.S. Sen. Elizabeth Warren is already defending the rate cuts, saying the Fed's hawkish outlook is driving up the cost of housing and insurance.

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”9.3836734693878″>

The Federal Reserve's high interest rates are driving up the cost of housing and insurance, putting real pressure on people's pockets.

It's time for the Federal Reserve to lower interest rates.https://t.co/UeESWFIcSj

—Elizabeth Warren (@SenWarren) twitter.com/SenWarren/status/1800277872570945779?ref_src=twsrc%5Etfw”>June 10, 2024

If the Federal Reserve cuts rates, demand for risk assets like cryptocurrencies will increase. To position themselves for such news, some traders like to hedge their bets by investing in pre-sales such as 99Bitcoins (99BTC), which have upside potential while being protected from downside before going public. 99BTC has already raised $2.1 million in funding.

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