US CPI Down 3.1%, Will Bitcoin Recover?


 "Now it looks weak, but will the price be volatile during the FOMC later?"

The price of cryptocurrency king Bitcoin (BTC) maintained its position below $41,500 as yesterday's United States (US) Consumer Price Index (CPI) data release for November was 3.1% as expected by market participants.

There is no denying that BTC prices have recently seen a pullback ahead of major macroeconomic events, but holders were relieved when Labor Department data revealed a 0.1% increase in US inflation while the all-items index rose 3.1% annually.

While core CPI excluding food and energy recorded an increase of 0.3% then core inflation on an annual basis rose 4% which reflected market expectations from the November data.

Investors are looking forward to the economic data to get an idea of the trajectory of the economy plus the drop in inflation has led to market speculation about a potential policy shift by the Federal Reserve (Fed).

It is expected that the price of BTC will probably see a fluctuating movement to either $40,335 or $39,580 which is quite significant during the Federal Open Market Committee (FOMC) meeting tomorrow at 3 am local time.

According to crypto investor and analyst Axel Bitblaze on his X account, the current decline in BTC and altcoin prices is predicted to be short-term only, so investors may soon buy digital assets.

As of this writing, the price of BTC which is currently trading at $41,061 is still recording a 1.39% gain in the last 24 hours with a market capitalization of $803 billion then a 6.73% decline over the last week.