"Hmm, I think the price of BTC will go up or down when the CPI data comes out later?"
The price of cryptocurrency king Bitcoin (BTC) which broke $37,900 on November 9, 2023 has retreated back below $36,400 as traders now await the United States (US) Consumer Price Index (CPI) data to be published tonight.
CPI which is closely related to the shift in the cost of living is expected to grow 0.1% for October 2023, where it marks a significant shift from the 0.4% increase seen in September.
Last week, Federal Reserve (Fed) Chairman Jerome Powell not only said that the US central bank would not hesitate to raise interest rates to ensure price stability, but also said that they are still not doing a strict enough monetary policy stance.
That streak, BTC traders will likely be more cautious as core inflation data excluding volatile items such as food and energy is expected to hold at 0.3%.
There is no denying that the core CPI remains high, but equities will immediately see a positive impact while the US dollar may face pressure if the data release is as expected.
Higher inflation can push risky assets such as BTC to climb higher than their current price, so here it can be seen that the digital asset could be affected due to the CPI data for October.
However, it should be noted that the impact of the release of macroeconomic data on BTC volatility is short-term as price increases always depend on the approval of the most anticipated spot BTC ETF.
As of this writing, BTC price has plunged by 1.82% to $36,418 in the past 24 hours with a market cap of $711 billion still posting a 4.03% jump over the past week.
