Bitcoin, the world’s leading cryptocurrency, witnessed a decline to $36,880, erasing gains from the weekend. Such Bitcoin liquidations appear as the crypto market braces for the release of the US Consumer Price Index (CPI) data.
Bitcoin’s Recent Performance and Key Levels
Over the weekend, Bitcoin briefly touched $37,900 on November 9 but retreated to $36,880 early on Monday. Despite recent corrections, Bitcoin to USD had shown resilience with a 5% gain for the week.
Possible Bitcoin Revival: Traders Await US CPI Data
Bitcoin traders are closely monitoring the release of October’s CPI report in the United States. The Headline CPI, a crucial indicator of inflation’s impact on the cost of living, is anticipated to grow by 0.1% month-over-month, a significant decline from September’s 0.4% increase.
Federal Reserve’s Influence on Bitcoin
Last week, Federal Reserve Chair Jerome Powell’s remarks on potential interest rate hikes added an extra layer of caution among Bitcoin traders. Powell emphasized the Fed’s commitment to price stability, instigating concerns about the central bank’s stance.
Bitcoin’s Reaction to Core CPI Numbers
Bitcoin traders are particularly watchful of the Core CPI, which excludes volatile elements like food and energy. Projections indicate a Core CPI inflation rate of 4.1% year-over-year and 0.3% month-over-month. Higher inflation often intensifies selling pressure on assets like Bitcoin.
Short-term Volatility vs. Long-term Outlook
While macroeconomic releases typically create short-term volatility, the long-term trajectory of the Bitcoin bull run remains contingent on catalysts such as the potential approval of a spot Bitcoin ETF. At present, Bitcoin Bank is valued at $36,929 on Binance.
Analyst’s Warning of Potential Bitcoin Pullback
Noted crypto analyst Ali Martinez, also known as Ali, suggests Bitcoin faces the risk of retracing to $30,000. Analyzing support levels, Martinez points out that Bitcoin might encounter significant demand around the $34,300 and $30,200 levels.
Bitcoin ETF Approval Hope Amid Market Dynamics
The crypto market’s optimism centres around the potential approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC). The current window for SEC approval is set to close on November 17, with expectations high, especially for filings by major financial institutions like BlackRock.
Political Uncertainties Impacting SEC Decision
Despite the positive outlook, the looming possibility of a U.S. government shutdown due to political factors could influence Bitcoin liquidations. A shutdown might delay essential services, including functions related to financial instruments, potentially affecting the approval of Bitcoin ETFs.