The week is going to be big and the latest developments in the crypto market and on the macroeconomic side will greatly influence investors’ sentiments. The U.S. Consumer Price Index (CPI) data today and Federal Reserve Rate Hike tomorrow will drive the market for the next coming weeks.
Bitcoin (BTC) price currently trades above $17,000 with a 2% jump before the November CPI inflation data. The rise is backed by a stronger U.S. stock market rally on Monday.
How CPI and Fed Rate Hike Will Influence Bitcoin Price
The October CPI came in at 7.7% against the expected 8% on November 10, which failed to influence crypto prices due to the FTX liquidity issues. On November 11, FTX and over 130 related firms including Alameda Research filed for Chapter 11 Bankruptcy.
The U.S. Bureau of Labor Statistics will release the US CPI data for November. The inflation rate is expected to slow for a fifth straight month to 7.3% in November, compared to 7.7% in October. It will be the lowest since December 2021. The Core CPI is expected to edge lower to 6.1% in November from 6.3% in October.
The FOMC meeting on December 13-14, after which the Fed announces its decision on a rate hike on December 14. Also, the FOMC will release economic projections for the next months. Fed Chair Jerome Powell earlier indicated a slowdown in the rate hike in December and the coming months.
According to CME FedWatch Tool, a probability of a 50 bps rate hike is 72.3%. Wall Street also expects the Fed to stick to a 50 bps rate hike in November.
Meanwhile, CPI will impact the Fed rate hike decision and a 75 bps rate hike may also be on the table. JPMorgan expects CPI reading between 7.2 and 7.4%, but a CPI below 6.9% YoY can be a bear market bottom.
BTC Price Moving Higher
Bitcoin (BTC) price currently trades at $17,395, up over 2% in the last 24 hours. Ethereum (ETH) price is also trading 2% higher at $1,271.
Crypto analysts expected Bitcoin price can dive lower on the risk of descending triangle pattern. However, better-than-expected CPI could push prices higher above $18k, a strong resistance for Bitcoin price. CPI data and Federal Reserve Rate Hike will remain the key market factors for the next coming weeks.
Also Read: Bitcoin On-Chain Data Indicates Bear Market Bottom
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/bitcoin-price-crash-incoming-after-us-cpi-and-fed-rate-hike/