- Bitcoin holders are likely to experience relief as inflation in the US declines to 3.1% in accordance with market expectations.
- BTC climbed to $42,069 briefly as the November CPI print came within market expectations.
- Bitcoin price trend likely to remain unchanged ahead of the FOMC meeting scheduled for Wednesday.
Market participants de-risked ahead of the November US Consumer Price Index (CPI) print and Federal Open Market Committee (FOMC) meeting, as Bitcoin (BTC) price declined 5% since Monday. BTC continues to consolidate after a bounce from $40,222 on Tuesday.
Bitcoin price briefly rallied to $42,069 in response to the November US CPI data release. Inflation rate in the US was 3.1% in November, as expected by market participants.
US CPI November release and Bitcoin price reaction
The annual Core CPI inflation, excluding volatile food and energy prices, came at 4%, as expected and on a monthly basis, the CPI and the Core CPI climbed 0.1% and 0.3%, respectively. The CPI release brings relief to Bitcoin holders after the recent pullback in BTC price, ahead of key macroeconomic events.
At the time of writing, Bitcoin price is $41,949, the asset is trading sideways below the $42,000 level.
BTC/USDT 5-minute chart
With the FOMC meeting scheduled for Wednesday, Bitcoin is likely to experience heightened volatility. Key Bitcoin price levels to watch are the upper and lower boundary of the CME gap, where liquidations are also present, at $40,335 and $39,580. Bitcoin price could visit the CME gap in the event of further decline.
BTC CME futures 4-hour chart
BTC liquidation levels heatmap. Source:hyblockcapital.com
Crypto investor and analyst Axel Bitblaze, behind the X (formerly Twitter) handle @Axel_bitblaze69, believes the recent decline in Bitcoin and altcoin prices is likely short-lived. The dips in crypto prices are likely to be bought up soon since macroeconomic events are lined up this week.
In my opinion, any dips in most of the coins will be quickly bought up soon.
— Axel Bitblaze (@Axel_bitblaze69) December 11, 2023
There are several significant events happening this week, which may explain why we're seeing some dips across the board.
• CPI tomorrow
• FOMC on Wednesday
bottom tomorrow & a bounce thereafter..
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
FLOKI rallies 9% on Tuesday, proposal to burn over 15.2 billion tokens is in the voting process
FLOKI holders are currently voting on a proposal to burn over 15.24 billion tokens, with 99% of the voters in favor of the event. The meme coin rallied 9% on the day on Binance.
Top 3 meme coins price prediction Dogecoin, Shiba Inu and Bonk: Memes wipe out gains from GameStop rally
Meme coins Dogecoin, Shiba Inu, and Bonk rallied alongside top meme tokens in response to GameStop’s rally on Monday. As legendary trader “Roaring Kitty” resurfaced on X with a series of tweets, meme tokens rallied, piling gains on Monday.
Arbitrum price sets the stage for 30% recovery rally Premium
Arbitrum (ARB) price is showing signals that suggest the downtrend could be coming to an end. If this development is coupled with improving Bitcoin price outlook, then ARB could be due for a quick move to the upside.
XRP climbs above $0.50 as Ripple files motion to seal documents in connection with SEC lawsuit
Securities and Exchange Commission (SEC) lawsuit against Ripple saw an update as the payment remittance firm filed a motion to narrowly seal documents related to the remedies-phase.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.