Recently, there have been significant fluctuations in the prices of Bitcoin; presently, they oscillate between $87,000-$87,500. This may not be eye candy to investors who are currently on the sidelines waiting for the coin to hit $90k, particularly the release of CPI data set today, November 13. This news is perceived by analysts to have a considerable influence on market sentiment and the expected direction of the alpha crypto asset.
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The Barometer For Inflation
Reflecting changes in the prices consumers pay for goods and services, the CPI report is a main indication of inflation. Expectations about the CPI can cause more volatility in the bitcoin markets as inflation rates affect the Federal Reserve’s choices on monetary policy.
Recent trends imply that should inflation remain lowered, the Federal Reserve might cut interest rates—historically this has had a positive effect on Bitcoin prices. Reduced borrowing rates sometimes inspire investment in risky assets such as cryptocurrencies, hence increasing demand for Bitcoin.
#Bitcoin is up to $90,000 and I think we’re about to get started with the markets.
The sweet spot is having a 10% correction towards the CME gap before we continue.
I’m slightly bearish going into CPI tomorrow. pic.twitter.com/dfpUc2df1k
— Michaël van de Poppe (@CryptoMichNL) November 12, 2024
Growing Investor Trust
Famous crypto expert Michaël van de Poppe, the founder of MNConsultancy, said that the current state of affairs in the crypto market corresponds well to the positive assessment of Bitcoin. In case CPI statistics would indicate more cases of inflation drops, he says that this would lead to growing investor trust and higher capital inflows into Bitcoin and other cryptocurrencies.
Will Bitcoin Retrace?
He also cautions, though, that unanticipated inflation rises could surprise markets and cause pricing adjustments all around. He anticipates a 10% Bitcoin retracement prior to the release of CPI data, targeting a range of $75,660 to $81,193.
Market Reactions And Predictions
As traders get ready for the CPI figures, the general market mood remains mixed. Some experts think that positive CPI numbers could lead to a rise in Bitcoin prices, but others say that people shouldn’t get too excited.
Meanwhile, many investors are still optimistic…
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