The US inflation rate has dropped to 3.1%, in line with market expectations, providing relief for bitcoin holders. Following the November CPI report meeting expectations, Bitcoin momentarily rose to $42,069 in value. A stable trend in the price of Bitcoin is anticipated in the run-up to the FOMC meeting. Prior to the FOMC meeting and the US CPI data in November, market participants decreased risk, which caused the price of Bitcoin to drop by 5% since Monday. Bitcoin is consolidating right now, having jumped from $40,222 on Tuesday. The US CPI data for November, which showed a 3.1% inflation rate in line with market forecasts, sparked a rise to $42,069 in response.
The US Consumer Price Index (CPI) publication in November and its effect on Bitcoin prices With volatile food and energy prices excluded, the annual Core CPI inflation rate of 4% met forecasts. The Core CPI climbed by 0.3%, while the CPI increased by 0.1% on a monthly basis. After a recent drop in the price of Bitcoin, which coincided with important macroeconomic events, this CPI report gives investors peace of mind. At $41,949, the price of Bitcoin is currently trading sideways below the $42,000 barrier.
It is anticipated that Wednesday’s FOMC meeting will cause more volatility in the price of bitcoin. Watch for potential liquidations at the CME gap boundaries of $40,335 and $39,580. Should there be an additional decrease, Bitcoin may return to the CME gap. The recent decline in the price of Bitcoin and other cryptocurrencies is probably only transitory, according to Axel Bitblaze, a cryptocurrency investor and analyst (@Axel_bitblaze69 on X), who is still upbeat and expects a bounce this week owing to impending macroeconomic developments.