Do you know that they’re Going to Be a Crash in the Bitcoin Price After the US CPI and the Fed Rate Hike or not let’s check out….
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This week is going to be a big one, and what happens on the crypto market and in the economy as a whole will have a big effect on how investors feel. The market will be driven over the next few weeks by the U.S. Consumer Price Index (CPI) data today and the Federal Reserve Rate Hike tomorrow.
The price of Bitcoin (BTC) is now over $17,000, which is a 2% increase from before the November CPI inflation data. The rise is helped by a stronger rally on Monday in the U.S. stock market.
How the CPI and Fed rate hike will affect the price of bitcoin
On November 10, the CPI for October came in at 7.7% instead of the expected 8%. This didn’t change the prices of cryptocurrencies because of the problems with FTX liquidity. On November 11, FTX and more than 130 related companies, including Alameda Research, filed for Chapter 11 bankruptcy.
US CPI Data
The November US CPI data will be released by the U.S. Bureau of Labor Statistics. The rate of inflation is expected to slow for the fifth month in a row, from 7.7% in October to 7.3% in November. The last time it was lower was in December 2021. The Core CPI is expected to drop from October’s 6.3% to November’s 6.1%.
FOMC
The FOMC will meet on December 13 and 14, and the Fed will announce its decision about whether to raise interest rates on December 14. Also, the FOMC will say what it thinks the economy will be like in the coming months. Fed Chair Jerome Powell had said before that the rate hikes would slow down in December and the months after that.
CME FedWatch Tool Said:
The CME FedWatch Tool says that there is a 72.3% chance of a 50-bps rate hike. Wall Street also thinks the Fed will stick to its plan to raise rates by 50 basis points in November.
In the meantime, the CPI will affect the Fed’s decision to raise interest rates, and a 75-bps rate increase may also be on the table. JPMorgan expects the CPI to be between 7.2 and 7.4%, but a CPI below 6.9% YoY could be the bottom of a bear market.
Changes in BTC Price Higher
Bitcoin (BTC) is currently worth $17,395, which is an increase of more than 2% in the last 24 hours. At $1,271, the price of Ethereum (ETH) is also up 2%.
On the chance of a descending triangle pattern, crypto analysts thought that the price of Bitcoin could go down. But a CPI that is better than expected could push prices above $18,000, which is a strong barrier for the Bitcoin price. For the next few weeks, the key market factors will continue to be CPI data and the Federal Reserve Rate Hike.
Source: Google Trend