After a significant five-week period of momentum that saw its price rise by almost 40%, Bitcoin has stalled over the past few days around the $37,000 area. As enthusiasm around the potential approval of Bitcoin exchange-traded funds has run out, speculators are now eyeing Tuesday’s US CPI data as a new catalyst.
Economists expect the monthly headline CPI in October to slow to 0.1% from 0.4% in September. The CPI is expected to decline year-on-year to 3.3% from 3.7%. The core CPI, which excludes food and energy costs, is expected to remain flat as of September at 0.3% monthly and 4.1% year-on-year.
Both measures remain well above the US Federal Reserve’s 2% target. While the central bank noted that inflation does not need to fall to 2% as a condition for ending interest rate hikes and considering lowering interest rates, speakers made clear that they want to see continued progress toward that goal.
As much as higher interest rates compete with risk assets, a lower interest rate may provide new room for Bitcoin to rise. The opposite is of course true: if inflation rises more than expected today, cryptocurrency prices will likely give up more of their advance in October.
This year, Bitcoin has risen beyond expectations, increasing in value by more than 120%, as a result of growing optimism regarding the possible approval of the regulatory body after long negotiations for Bitcoin exchange-traded funds. Caroline Morrone, founder of Orbit Markets, which specializes in digital asset derivatives liquidity, sees “sustained interest” in investment bets on a further rise for Bitcoin. In contrast, global stocks rose by only 10% during the same period.
Despite this rise, Bitcoin is still halfway towards reclaiming its 2021 peak, when it was worth nearly $69,000. As it is facing a resistance point at $38,000, and if it is breached, it will rise to the mid-forties if conditions remain as they are currently.
Josh Gilbert, market analyst at eToro, notes that ETF expectations are a growing catalyst for the current rally to continue. He adds that bets that the US Federal Reserve has finished raising interest rates now, along with expectations of a Bitcoin halving next year, also contribute to supporting this rise.
The combined market value of the crypto market during these moments of today’s trading amounted to approximately $1.40 trillion. The trading volume reached approximately $62.00 billion, according to the data.
Bitcoin fell during the last 24 hours to the levels of $36,721, by 0.9%, while recording weekly gains of 5.2%. Its market value now stands at $716 billion.
While Ethereum, which is the largest digital currency by market value after Bitcoin, rose by about 0.25% during the last 24 hours, reaching $2,063, with weekly gains of 9%, and a market value of about $247 billion.
The price of Binance Coin BNB/USD fell by 1% to record $245.
While Ripple gained approximately 0.77% of its value, recording $0.66431, while it declined by 4% in the last 7 days.
Solana fell by 5.55% during the last 24 hours to $55.35, and rose by 33% during the last 7 days.
Cardano witnessed a decline to $0.3689, by 3.7%, while it rose during the last 7 days by 3.8%.
At the same time, Dogecoin fell to the level of $0.075108, by 2.8%.
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2023-11-14 10:10:15
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