Bitcoin Volatility Ahead: US CPI Data Release Looms

Bitcoin's price has maintained its bullish bias despite facing resistance at the 200-day Exponential Moving Average (EMA). The cryptocurrency is trading around $81,000 as investors await the release of the US Consumer Price Index (CPI) data on Tuesday. The report is expected to show a sharp increase in inflation, driven by higher oil prices and ongoing US-Iran tensions.

The CPI data is forecast to rise by 0.6% for April, following March's 0.9% increase. The annual CPI reading is anticipated at 3.7%, up from 3.3% in March. Core CPI, excluding food and energy prices, is expected to climb to 2.7% year-over-year.

The data will likely shape expectations for future interest rate cuts by the Federal Reserve (Fed), potentially triggering volatility in Bitcoin and other risk assets. Elevated crude oil prices continue to add to inflationary pressures, reinforcing the likelihood of a more hawkish Fed stance, which could weigh on Bitcoin's upside.