Bitcoin Loses Momentum Ahead Of CPI Data
If you’re following the Bitcoin price, you may have noticed a recent downturn on Tuesday, November 14. This decline has erased some of its recent gains, and it’s happening right before crucial inflation data is set to be released later today. In particular, the U.S. Consumer Price Index (CPI) data for October is expected to be released soon, and this can significantly affect the broader market momentum, including Bitcoin’s performance.
Market Sensitivity To Economic Indicators
The U.S. Federal Reserve’s release of Consumer Price Index (CPI) data and Producer Price Index (PPI) data this week is an important focal point. There’s a lot of attention on these reports because they provide insights into the nation’s economic health, particularly with regard to inflation’s impact on recent market momentum. Analysts have noted that Bitcoin has been sensitive to economic indicators like the CPI in the past, which highlights its volatility.
The upcoming CPI report is expected to show a slowdown in October’s headline CPI to 3.3% year-over-year. Economists also anticipate the core CPI to remain stable at 0.3% monthly and a 4.1% year-over-year increase. These estimates suggest that the current CPI still surpasses the US Federal Reserve’s 2% target, indicating a complex economic landscape that may have a substantial impact on Bitcoin.
Recent Price & Performance
Over the past 24 hours, the Bitcoin price declined by 1.47%, trading at $36,454.47 during writing. However, over the past seven days, it has added nearly 6%, and approximately 36% over the last 30 days. The global crypto market cap also fell 1.47% to $1.4 trillion during writing.
Hot Take: Higher Interest Rates Impact Investor Sentiment
If October inflation comes in higher than anticipated, it would give more space to the central bank to continue with its rate hike plans. Higher interest rates tend to negatively impact not just Bitcoin but also other financial markets along with risk-bet assets like cryptocurrencies.
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