Bitcoin (BTC) started targeting $37,000 when the Wall Street opened. The latest US inflation data fell short of expectations, prompting the BTC price to regain strength. Market analysts looked at the Consumer Price Index (CPI), which showed a slowdown in inflation for October. The CPI came in 0.1% below expectations both month-on-month and year-on-year. The annual change stood at 3.2%, compared to 4.0% for the core CPI.
According to the official press release from the U.S. Bureau of Labor Statistics, the all items index rose by 3.2% for the 12 months ending in October, a smaller increase than the 3.7% rise for the 12 months ending in September. The all items less food and energy index rose 4.0% over the 12 months, marking its smallest change since September 2021.
This news brought a sense of relief to Bitcoin and stock markets. Stocks showed immediate positive reaction at the Wall Street open, with the S&P 500 rising 1.5% for the day. The data also had an impact on Bitcoin, which revisited an intraday low before climbing back towards the $37,000 mark while being rangebound.
Market composition analysis revealed that liquidity was generally thin, making it a key factor in aiding volatility. With whales remaining quiet on exchanges, retail investors were increasing their exposure to Bitcoin.
Market analysts suggested that the slight downtrend in Bitcoin’s price was within expectations. James Van Straten, a research and data analyst at crypto insights firm CryptoSlate, pointed out that market corrections were normal and healthy, stating that bull market corrections were standard and fit within the broader uptrend.
In an interview with Cointelegraph, Filbfilb, co-founder of trading suite DecenTrader, predicted a possible significant drawdown for Bitcoin prior to the April 2024 block subsidy halving event.
In conclusion, the CPI data had a positive impact on Bitcoin and the stock markets, uplifting investor sentiment as Bitcoin sought to reach the $37,000 target. The market responded warmly to the news, and analysts affirmed the natural correction in Bitcoin’s price amidst the broader market uptrend. This demonstrated the resilience and adaptability of the cryptocurrency market to external financial data and conditions. As always, it is important to conduct thorough research and due diligence before making any investment or trading decisions.