Bitcoin (BTC) held support at $17,000 until Dec. 10 ahead of a critical week of macro data.
CPI print will cause the Fed to “slow down”
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it traded sideways after the close of trading on Wall Street.
The pair looked set for a quiet weekend, with all eyes focused on the US inflation readings and policy updates due on December 13.
With November’s Producer Price Index (PPI) print behind it, the month’s Consumer Price Index (CPI) results took center stage.
As Cointelegraph reported, Expectations remain that the CPI will show that US inflation continues to decline, prompting renewed strength in risk assets, including cryptocurrencies.
“My personal expectations are that we will see the CPI at 7.0-7.2%, the CPI core at 5.9-6.1% and that we will have a big impact on the markets again,” wrote Michaël van de Poppe, founder and CEO of the trading firm. Eight, in a Twitter thread about the topic.
Van de Poppe added that the Fed’s December 15 Federal Open Market Committee (FOMC) meeting should respond in kind if that outcome occurs.
“The FOMC will pause and slow down after this event,” he predicted.
For his part, macroeconomist and stock market analyst James Choi produced a ready of stock market catalysts at the end of the week, including emerging markets and the “endless suppression” of the VIX volatility index.
“Spiking US inflation, weak dollar and China reopening are creating huge investment opportunities. The $CHIR Chinese Real Estate ETF is up a staggering 80% since November. Unbelievable”, added.
China excites Bitcoin bulls
Continuing with China, Cryptocurrency trader and analyst TechDev outlined a possible leading indicator of Bitcoin’s strength in the form of the 10-year Chinese bond yield against the US Dollar Index (DXY).
Now it’s headed higher if history repeats itself, the BTC/USD pair could benefit in kind, said in one of several Twitter messages this week.
“Few signals have correlated with Bitcoin’s macro inflections as closely as the Chinese 10-year yield,” it said. read in another comment.
“Local tops on major $BTC momentum tops. CN10Y local downtrend was broken by 3W RSI above 50…Started each of Bitcoin’s last 3 largest moves.”
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