US CPI Data Release Could Trigger Massive Crypto Rally—Here’s Why

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Federal Reserve Chair Jerome Powell is facing one of his toughest weeks of his career. President Trump is demanding big rate cuts and even talking about replacing him. At the same time, the Fed is facing heat over a $2.5 billion renovation project, though it’s not using taxpayer money. 

Meanwhile, financial analyst Paul Barron says all this could turn out to be bullish news for crypto, especially Bitcoin.

CPI Data Expectations

The tension is set to peak as new Consumer Price Index (CPI) inflation data will be released today for June. However, last month, May’s CPI came in at 2.4%, slightly higher than April’s figure. 

Now, experts predict June’s CPI might rise to 2.6%. However, if inflation surprises to the downside, falling below 2.4%, it could give the Federal Reserve the green light to cut interest rates sooner.

Lower interest rates would likely pump more liquidity into the markets, giving a strong boost to risk assets like cryptocurrencies. 

Recently, Bitcoin just broke the $120,000 mark, reaching as high as $123,000. Analysts’ optimistic forecasts suggest Bitcoin could reach $130,000 before the end of July.

Powell’s $2.5 Billion Renovation Scandal Intensifies

On top of it Federal Reserve Chair Jerome Powell is dealing with mounting controversy as the cost of renovating the Fed’s historic Washington D.C. headquarters has soared to $2.5 billion, nearly $700 million above earlier expectations.

Crypto Week: Big Decisions Ahead

It’s not just the CPI data release or the Fed drama giving crypto a boost. This week, the U.S. House of Representatives is calling it “Crypto Week” as lawmakers vote on key crypto bills.

One of them is the CLARITY Act, which aims to set clear rules for digital assets and cryptocurrency markets and decide which agencies will regulate it.

Another is the Anti-CBDC Surveillance State Act, which wants to block the launch of a government digital dollar due to privacy concerns.

The GENIUS Act is also on the table. It sets the first clear rules for stablecoins, helping both safety and innovation.

Why This Matters for Crypto

According to analyst Paul Barron, the stakes are huge. If tomorrow’s CPI numbers come in below 2.4%, the Fed might cut interest rates soon. That could bring fresh money into the market and push risk assets like crypto higher.

Barron also says Bitcoin could move differently from stocks if more liquidity comes in. This shift might boost coins like Ethereum and XRP, too, giving them room for strong gains.