Prior to the release of new key US inflation data, Bitcoin was hovering around $48,000


Bitcoin (Bitcoin) Rose to above 48,000 US dollars on December 10, after another drop before that, BTC/USD fell to a low of 47,350 US dollars overnight.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Gradually lose your temper

Data from Cointelegraph Markets Pro and Transaction view As the market prepares for November’s Consumer Price Index (CPI) readings, the currency pair is shown at $48,300 at the time of writing.

As Cointelegraph Report, Economists expect this month’s year-on-year inflation data to exceed October’s 6.7%.

Although the shocking CPI news last month promoted the rise of Bitcoin and encrypted assets, analysts were generally cautious before Friday’s data release.

“At this point, I don’t think the CPI data has practical meaning. Unless it reaches extremes, the market has already priced it,” said Pentoshi, a popular trader. debate On Twitter.

He added that the “real” potential market driver on the macro front should be the Federal Open Market Committee of the Federal Reserve next week giving instructions on the central bank’s asset purchase reduction policy.

Commentators say that increasing the rate of declining—decreasing asset purchases—will put pressure on risky assets and lead to a decline in Bitcoin’s performance. For Arthur Hayes, the former CEO of derivatives platform BitMEX, this situation will only be reversed when the Federal Reserve restores “business as usual.”

“For those who decide whether to allocate more fiat currencies to cryptocurrencies, the wait is worth it. I don’t think money will become more free or easier. Therefore, in March 2022 or June 2022, the Federal Reserve After raising interest rates, it is worth waiting for the dust to settle,” he wrote in the latest report. Blog post Thursday.

“If the Fed raises interest rates and then quickly resumes its zero-interest rate policy and actively buys bonds, please pay attention to the skyrocketing prices of risky assets. When the Fed sends a signal to resume business as usual, it’s time to back up the truck.”

American inflation chart.Source: Trade Economics

“It takes time at the bottom”

This forecast is related to Bitcoin’s existing mid-term forecast, pushing its cycle up to 2022-not this month, because Previously booked.

“It takes time to bottom. Unfortunately, they did. We are approaching it through Bitcoin,” he suggestion Twitter fans.

“After that, we will usher in another big cycle in 2022. Everything is fine.”

he Add to Compared with 2017 (the year of the bull market after the last halving), Bitcoin “may” be closer to the beginning of the peak rather than the end.

At the same time, separate data shows that Bitcoin has been copying price behavior almost from 2017 to today, facing Key test This month.