#BTC
Bitcoin faces U.S. CPI test as analysts warn inflation relief may not be enough
Bitcoin BTC$74,766.87 traded weak early Tuesday as analysts braced for October inflation data that could determine whether risk assets get a year-end tailwind or face another wave of selling.
The leading cryptocurrency by market value changed hands at around $74,750 at press time, down 0.6% since midnight UTC hours. Prices briefly topped $75,000 during the overnight trade.
The consumer price index (CPI), due at 8:30 a.m. ET, is forecast to rise 0.3% on the month, while core inflation, which strips out volatile food and energy costs, is expected to increase 0.2%, according to Dow Jones consensus estimates. Both would mark a slowdown from September’s 0.6% and 0.3% gains, respectively.
There will be no year-over-year comparison for October. A government shutdown in October last year prevented the Bureau of Labor Statistics from compiling a full index level, leaving no comparable annual figure.
A market waiting for relief
For bitcoin, the report arrives at a fragile moment. The cryptocurrency has been in a mini-downtrend since peaking above $87,000 in early October, as AI-related jitters weighed on Wall Street.
Spot bitcoin ETFs, the demand source many bulls had counted on to sustain the rally into year-end, have faltered, leaving the market dependent on broader macro conditions and spot buying to regain momentum.
Analysts therefore expect a temporary relief on the back of a potential soft inflation print and look to ETFs for a sustained rally.
“Any easing in inflation expectations would help risk assets,” analysts at BRN said. “[But], Bitcoin needs real buying, not a lucky break. Until ETF flows turn positive and the Fed turns dovish, the path of least resistance remains lower.”
#Write2Earn $BTC
Bitcoin faces U.S. CPI test as analysts warn inflation relief may not be enough
Bitcoin BTC$74,766.87 traded weak early Tuesday as analysts braced for October inflation data that could determine whether risk assets get a year-end tailwind or face another wave of selling.
The leading cryptocurrency by market value changed hands at around $74,750 at press time, down 0.6% since midnight UTC hours. Prices briefly topped $75,000 during the overnight trade.
The consumer price index (CPI), due at 8:30 a.m. ET, is forecast to rise 0.3% on the month, while core inflation, which strips out volatile food and energy costs, is expected to increase 0.2%, according to Dow Jones consensus estimates. Both would mark a slowdown from September’s 0.6% and 0.3% gains, respectively.
There will be no year-over-year comparison for October. A government shutdown in October last year prevented the Bureau of Labor Statistics from compiling a full index level, leaving no comparable annual figure.
A market waiting for relief
For bitcoin, the report arrives at a fragile moment. The cryptocurrency has been in a mini-downtrend since peaking above $87,000 in early October, as AI-related jitters weighed on Wall Street.
Spot bitcoin ETFs, the demand source many bulls had counted on to sustain the rally into year-end, have faltered, leaving the market dependent on broader macro conditions and spot buying to regain momentum.
Analysts therefore expect a temporary relief on the back of a potential soft inflation print and look to ETFs for a sustained rally.
“Any easing in inflation expectations would help risk assets,” analysts at BRN said. “[But], Bitcoin needs real buying, not a lucky break. Until ETF flows turn positive and the Fed turns dovish, the path of least resistance remains lower.”
#Write2Earn $BTC
