The US inflation and jobs data have a major impact on the crypto market, especially the price of Bitcoin. As the US Federal Reserve looks to raise interest rates in July after holding them unchanged last month due to a tight labor market, falling inflation and a falling dollar could boost the prices of cryptocurrencies like Bitcoin and Ethereum.

Recently, the European Banking Authority (EBA) published its first set of measures outlining the MiCAR requirements that will come into effect in a year. These measures include provisions such as permanent rights of redemption and handling complaints. With the approval of MiCAR, which provides a comprehensive set of rules for trading cryptocurrencies such as Bitcoin and Ether, EBA officials are expecting a surge in stablecoin issuance over the next few months. They have called on firms to follow their guiding principles on risk management and good governance before the mandatory rules come into effect.

The market forecast reveals that annual CPI inflation for June fell to 3.1%, marking the 12th consecutive month of falls. This is the lowest level since March 2021. Additionally, core CPI inflation decreased to 5% from 5.3% in May. However, monthly CPI for June rose by 0.3%, compared to 0.1% last month.

Wall Street analysts also estimated a significant fall in CPI inflation. Bloomberg, Citi, HSBC, UBS, and Nomura expect CPI at 3%, while Goldman Sachs, BMO, Barclays, Morgan Stanley, TD Securities, and CIBC estimated inflation to fall to 3.1%. Meanwhile, JPMorgan, RBC, and Visa forecasted annual CPI at 3.2%.

The falling headline inflation could bring further upside movement in both stocks and crypto markets. Analysts at JPMorgan said that inflation is likely to fall below consensus estimates and compel the Fed to shift to a dovish outlook.

The CME FedWatch Tool shows a 90% probability of a 25 basis point hike being announced during the FOMC meeting on July 26. However, the US dollar index (DXY) fell to a two-month low of 102 and is expected to continue falling below 101. This could support further upside movement in Bitcoin price above $31,000.

As the US inflation and dollar continue to fall, Bitcoin and Ethereum prices are set to rally further. The market sentiment for BTC price hitting $100k has been triggered as Standard Chartered revised its Bitcoin prediction higher. Crypto analysts point to Bitcoin price hitting $35,000 and Ethereum above $2,000.

Popular analyst Michael van de Poppe expects Bitcoin to finally cross $31,500. However, he recommends being cautious on the day of the CPI release. BTC price currently trades at $30,800, up 1% from a 24-hour low of $30,358.

Meanwhile, analyst Ali Martinez noted that ETH price sits on top of stable support between $1,800 and $1,870 where 3.4 million addresses bought 11.2 million ETH. However, the $2,040 and $2,100 resistance range is more significant as one million addresses purchased 27 million ETH. ETH price currently trades at $1,888 up nearly 0.5% in the past 24 hours.

In conclusion, as US inflation continues to fall and the dollar weakens against other currencies, there is potential for further upside movement in both stocks and crypto markets. This could lead to increased interest in cryptocurrencies like Bitcoin and Ethereum as investors look for alternative assets that may provide higher returns than traditional investments. The falling headline inflation and the weakening dollar could provide a boost to the crypto market, particularly for early adopters and long-term token holders of cryptocurrencies like Bitcoin and Ethereum. As the market continues to evolve, it will be important for investors to stay informed and make responsible investment decisions.