Why Bitcoin Traders Are Eyeing This Week's Upcoming US Inflation Print

Bitcoin traders are preparing for the release of crucial U.S. inflation data which could influence Federal Reserve policy and dictate market movements. Traders are observing a weak risk appetite ahead of the Consumer Price Index (CPI) report, the first significant inflation signal in weeks. The October inflation is anticipated to remain steady at 3% year-over-year, a consensus from various analysts suggests. A cooler inflation report could potentially boost Bitcoin prices by restoring risk appetite, while a hotter report may lead to further declines and strengthen the dollar. Recent market movements indicate recovery following a significant sell-off, yet traders remain cautious amid uncertainties regarding the CPI data release schedule. Overall, the inflation metrics, especially after the government's 43-day shutdown, are seen as pivotal for guiding Federal Reserve rate cut expectations in December, directly impacting Bitcoin's valuation and liquidity in the broader market.

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