Bitcoin hovers near $ 48,000 ahead of key new US inflation data

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Bitcoin (BTC) rallied above $ 48,000 on December 10 after another drop took BTC / USD to an overnight low of $ 47,350.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewTaper tantrums

Data from Cointelegraph Markets Pro and TradingView showed the pair orbiting around $ 48,300 at the time of writing as markets brace for November’s Consumer Price Index (CPI) reading.

As Cointelegraph reported, economists estimate this month’s year-on-year inflation data will exceed October at 6.7%.

While shock news from the CPI last month fueled a slight increase in Bitcoin and crypto assets, analyst caution prevailed ahead of Friday’s numbers.

“At this point, I think the CPI data is not applicable. Markets have taken it in unless it’s to the extreme, ”popular trader Pentoshi said on Twitter.

He added that the “real” potential market driver on the macro side should be next week when the US Federal Reserve’s Federal Open Market Committee provides guidance on the bank’s policy of reducing asset purchases. central.

According to commentators, increasing the rate of reduction – decreasing asset purchases – would put pressure on risky assets, leading to a reduction in Bitcoin’s performance. For Arthur Hayes, former CEO of the BitMEX derivatives platform, this would only reverse once the Fed returned to “business as usual”.

“For those who decide to allocate more fiat to crypto, it’s worth the wait. I don’t see the money getting any more free or easier. Therefore, it’s worth staying on the sidelines until ‘That the dust settles after a Fed rate hike in March 2022 or June 2022, “he wrote in his latest blog post on Thursday.

“Watch out for a surge in risky asset prices if the Fed hikes, followed by a rapid resumption of zero interest rate policy and aggressive bond purchases. When the Fed signals a return to business as usual, then it’s time to back down. ” US inflation chart. Source: Trading Economics “Funds take time”

Such a prognosis ties in with the existing medium-term forecast for Bitcoin, further increasing its cycle peak in 2022 – not this month, as previously expected.

“Stockings take time. Unfortunately, they do. And we are getting closer with Bitcoin, ”he advised Twitter followers.

“After that, we’ll have another great cycle in 2022. Everything is fine.”

He added that compared to 2017, the last year of the bull run after the halving, Bitcoin was “probably” closer to the start of its peak phase than to the end.

Meanwhile, separate data, which showed Bitcoin was copying the price action of 2017 almost overnight, faces a key test this month.

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