There have been significant price fluctuations recently Bitcoin; they currently range from $87,000-$87,500. This may not be pleasing to the eye for investors who are currently on the sidelines waiting for the coin to reach $90,000. dollars, in particular for the publication of CPI data today, November 13. Analysts see this news as having a significant impact on market sentiment and the expected development direction of the alpha cryptocurrency.

Inflation barometer

Reflecting changes in prices paid by consumers for goods and services, CPI report is the main indicator of inflation. CPI expectations could cause more volatility in bitcoin markets as inflation rates influence the Federal Reserve’s monetary policy choices.

Recent trends suggest that if inflation remains depressed, the Federal Reserve may lower interest rates – this has historically had a positive impact on Bitcoin prices. Reduced interest rates sometimes inspire investment in risky assets such as cryptocurrencies, thus increasing demand for Bitcoin.

#Bitcoin is up to $90,000 and I think we’re about to start with the markets.

The sweet spot is a 10% correction towards the CME gap before we continue.

Tomorrow I approach the CPI with a slightly bearish attitude. pic.twitter.com/dfpUc2df1k

— Michaël van de Poppe (@CryptoMichNL) November 12, 2024

Growing investor confidence

Well-known cryptocurrency expert Michaël van de Poppe, founder of MNConsultancy, stated that the current state of affairs on the cryptocurrency market corresponds well with the positive assessment of Bitcoin. In case CPI statistics would point to more declines in inflation, he argues that this would lead to increased investor confidence and greater capital inflows into Bitcoin and other cryptocurrencies.

Will Bitcoin come back?

But it also warns that an unforeseen rise in inflation could surprise markets and cause widespread price adjustments. He predicts a 10% retracement for Bitcoin ahead of the CPI data release, targeting a range of $75,660 to $81,193.

Market reactions and forecasts

As investors prepare for CPI data, overall market sentiment remains mixed. Some experts believe that positive CPI data could lead to a rise in Bitcoin prices, but others say people shouldn’t get too excited.

Meanwhile, many investors remain hopeful about Bitcoin’s long-term prospects. The incoming administration of newly elected US President Donald Trump adds another layer of complexity to market dynamics.

According to Van de Poppe, short-term regulatory actions will benefit Bitcoin, but their long-term consequences could be more intricate if inflation controls are not well managed.

Meanwhile, as Bitcoin continues its path to significant price discovery, attention will turn to CPI data and its impact on the digital asset. Investors should approach such an unpredictable environment with caution, focusing on economic events that may impact their investments.

At the time of writing, Bitcoin was listed at $87,509an boost of 2.1% and 17.2% on a daily and weekly basis, according to Coingecko data.

Featured image from The VR Soldier, chart from TradingView