- Bitcoin saw a notable five-week surge, lifting its value by nearly 40%, only to face a bearish downturn and consolidate around $36k.
- The excitement surrounding a potential spot ETF diminishes as Bitcoin fails to surpass $37k.
- Investors now focus on the upcoming CPI data release as a crucial market influencer.
Following a robust five-week ascent, propelling its value by nearly 40%, Bitcoin (BTC) has encountered a period of consolidation in the $37,000 range. The digital asset appears unable to sustain the bullish rally, with its price now around $36,000 after largely bearish trading in the past 24 hours.
With the excitement surrounding the potential approval of a Bitcoin spot ETF dwindling, investors may shift their focus to Tuesday’s Consumer Price Index (CPI) as a potential catalyst for renewed bullish momentum. Specifically, the U.S. Bureau of Labor Statistics (BLS) is expected to release the CPI data today at 08:00 a.m. local time.
Financial experts anticipate a slowdown in the monthly headline CPI for October, dropping from 0.4% in September to 0.1%, with the year-over-year CPI expected to decrease from 3.7% to 3.3%.
To provide context, CPI gauges inflation by monitoring the prices of a basket of goods and services that consumers typically purchase in the U.S. As Coin Edition previously noted, in instances where CPI surpasses expectations, there is a potential for a sell-off in risky assets like Bitcoin. Conversely, a lower-than-expected CPI reading could uplift sentiment and trigger a rally in risk-asset markets.
Reportedly, the core CPI, excluding food and energy costs, is projected to remain unchanged from September at 0.3% monthly and 4.1% year-over-year. Therefore, with the anticipated decrease in U.S. CPI coming to fruition, Bitcoin could be reinforcing the bullish rallies it commenced in October, impacting the broader risk asset market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.