Bitcoin Surges in Response to US Inflation Data
Investors and traders are closely watching the latest core inflation rate data from the US, as it has implications for the cryptocurrency market, particularly Bitcoin (BTC). Following the release of the November US CPI data, BTC briefly surged to $42,069 before dropping back to $41,000.
US Inflation Data and Market Reaction: Impact on Fed Policy Speculation
The Bureau of Labor Statistics released the US Consumer Price Index (CPI) data for November, showing a 3.1% rise in inflation. This has reinforced the belief that the Federal Reserve will maintain interest rates at its year-end meeting. The core inflation rate, which excludes food and energy prices, increased by 0.3% in November.
BlackRock’s Bitcoin ETF Bid: Market Impact and SEC Wariness
BlackRock is seeking regulatory approval for its Bitcoin ETF, which would allow investors to gain exposure to Bitcoin without directly purchasing or storing the cryptocurrency. However, the SEC remains cautious due to concerns about potential market manipulation. A decision on BlackRock’s application is expected by January 15.
Bitcoin Price Prediction
In terms of technical analysis, Bitcoin is currently in a precarious position. It faces resistance at various price levels, with support levels below its current price. The Relative Strength Index (RSI) suggests a bearish outlook, and Bitcoin’s price is below the 50-Day Exponential Moving Average (EMA). The chart pattern indicates a downward trend. However, a breakthrough above key resistance levels could signal a change in sentiment.
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Hot Take: Bitcoin Price Prediction as US Core Inflation Rate Data is Announced โ Time to Buy?
The recent surge in Bitcoin’s price in response to the US inflation data may indicate a positive market sentiment. However, the overall impact remains uncertain and depends on broader economic factors. Investors should carefully monitor key resistance and support levels to determine future market trends.
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