Bitcoin hovers near $48K ahead of fresh key US inflation data

Bitcoin (BTC) rallied above $ 48,000 on December 10 after another drop took BTC / USD to lows of $ 47,350 overnight.

Tantrums

Data of Cointelegraph Markets Pro Y TradingView showed the pair hovering around $ 48,300 at the time of this writing as markets braced for the November Consumer Price Index (CPI) reading.

As Cointelegraph reported, economists tip this month's year-on-year inflation data to top October by 6.7%.

While last month's shocking IPC news fueled a rally in Bitcoin and crypto assets, caution among analysts prevailed ahead of Friday's figures.

“At this point, I think the CPI data is debatable. The markets have priced it unless it's on the extreme, "popular trader Pentoshi said. argument On twitter.

He added that the "real" potential driver of the market from the macroeconomic side should be next week when the Federal Open Market Committee of the Federal Reserve of the United States gives indications on the policy of gradual reduction of the purchase of central bank assets. .

Increasing the drawdown rate (decrease in asset purchases) would put pressure on risk assets, commentators say, reducing Bitcoin's performance. For Arthur Hayes, former CEO of derivatives platform BitMEX, this would only be reversed once the Fed returns to "business as usual."

“For those who are deciding whether to allocate more fiat money to cryptocurrencies, it is worth the wait. I don't see money getting more free or easier. So it's worth staying on the sidelines until the dust clears after a Fed rate hike in March 2022 or June 2022, ”he wrote in his latest blog post Thursday.

“Watch out for a vomit festival in risk asset prices in case the Fed raises, followed by a swift resumption of zero interest rate policy and aggressive bond purchases. When the Fed signals a return to business as usual, then it's time to back down. "

"Funds take time"

Such a forecast ties in with existing medium-term forecasts for Bitcoin to hit its peak cycle later in 2022, not this month, as previously scheduled.

“Funds take time. Unfortunately, they do. And we are getting closer to that with Bitcoin ”, advised Twitter followers.

"After that, we will have another great cycle in 2022. All good."

He additional that compared to 2017, the last year of the bull run after the halving, Bitcoin was "probably" more towards the beginning of its peak phase than towards the end.

Meanwhile, separate data, which has shown that Bitcoin copies the price action from 2017 almost to the day, face a Key test this month.