Following a robust five-week ascent, propelling its value by nearly 40%, Bitcoin (BTC) has encountered a period of consolidation in the $37,000 range. The digital asset appears unable to sustain the bullish rally, with its price now around $36,000 after largely bearish trading in the past 24 hours.
With the excitement surrounding the potential approval of a Bitcoin spot ETF dwindling, investors may shift their focus to Tuesday’s Consumer Price Index (CPI) as a potential catalyst for renewed bullish momentum. Specifically, the U.S. Bureau of Labor Statistics (BLS) is expected to release the CPI data today at 08:00 a.m. local time.
Financial experts anticipate a slowdown in the monthly headline CPI for October, dropping from 0.4% in September to 0.1%, with the year-over-year CPI expected to decrease from 3.7% to 3.3%.
CPI Report Tuesday Could Provide Next Bitcoin Catalyst
The U.S. government tomorrow will report on October inflation data.
After a major five-week run that took its price nearly 40% higher, bitcoin (BTC) has stalled for the past several days around the $37,000 area. To the extent… pic.twitter.com/9Moi4LNWqQ
— Chelsea Jones (@yeyitopeedur) November 14, 2023
To provide context, CPI gauges inflation by monitoring the prices of a basket of goods and services that consumers typically purchase in the U.S. As Coin Edition previously noted, in instances where CPI surpasses expectations, there is a potential for a sell-off in risky assets like Bitcoin. Conversely, a lower-than-expected CPI reading could uplift sentiment and trigger a rally in risk-asset markets.
Reportedly, the core CPI, excluding food and energy costs, is projected to remain unchanged from September at 0.3% monthly and 4.1% year-over-year. Therefore, with the anticipated decrease in U.S. CPI coming to fruition, Bitcoin could be reinforcing the bullish rallies it commenced in October, impacting the broader risk asset market.
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