Crypto Markets Bullish on Soft Inflation Data, CPI Report Set to Drive Volatility

-Bitcoin has had eight days of straight gains, bringing its year-to-date rise to 9.2%
-Low volatility in the crypto markets and softer inflation data have been key drivers of the increase in prices
-The upcoming CPI report, released on Thursday, is expected to cause further volatility in the markets

Cryptocurrency markets have been bullish in recent days, with Bitcoin having increased for eight straight days, now up 9.2% on the year. This notable period of price increases has been driven by a number of factors, including the macro climate, low volatility in the crypto markets, and softer inflation data.

The macro climate has been a key factor in driving prices upward. Last week, optimism began to creep into the market that inflation may have peaked and that the Federal Reserve may soon pivot away from its policy of heightened interest rates. This optimism was further fuelled by the softer inflation data that has been released in the past month or so.

The softening of inflation has been a major driver of the increase in crypto prices in recent days. This period of low volatility in the crypto markets has been a major boon for investors, as the lack of volatility has enabled investors to make more informed decisions.

However, there is still a key piece of data that investors must be aware of. On Thursday, the latest CPI report will be released, which is expected to cause further volatility in the markets. The CPI report is vitally important for the market following the increased optimism over the last month or so.

Altcoins in particular could be set for a volatile ride on the back of the CPI report, as investors will be looking to gauge the impact of the report on the broader crypto market. Bitcoin, however, is likely to shake off any of its recent gains if the data comes in above or below expectation.

Ultimately, the crypto markets are in a period of uncertainty and volatility, and investors must remain vigilant in order to make the most of the current market conditions. The CPI report is expected to cause further volatility in the markets, and investors should be prepared for a possible shift in the direction of crypto prices as a result.