Numerous macroeconomic data points from the United States are expected to impact Bitcoin and the cryptocurrency market this week. On Tuesday, February 13, 2023, the market expects the publication of the January CPI statistics, which might have a big effect on the price and volatility of Bitcoin.
Macroeconomic events and indicators, such as data from the Consumer Price Index (CPI), which monitors shifts in the cost of goods and services, often have an impact on Bitcoin. The CPI numbers show the level of inflation in the economy, which affects the US dollar’s value and the Federal Reserve’s interest rate policy.
The Federal Reserve will probably keep a close eye on the Producer Price Index (PPI) and Consumer Price Index (CPI) readings for January as the markets solidify their expectations of interest rate reductions.
The U.S. dollar may strengthen if the U.S. consumer price report on Tuesday reveals higher-than-expected inflation, supporting the Federal Reserve’s reluctance to lower rates, according to insights shared by the Walter Bloomberg X account. Abdelhadi Laabi, chief marketing officer at KAMA Capital, is cited in support of this theory.
On the other hand, the currency may depreciate if inflation is lower than anticipated.
https://x.com/DeItaone/status/1757016871356834116?s=20
The headline According to an expert survey conducted by The Wall Street Journal, U.S. inflation is forecast to drop from 3.4% in December to 2.9% in January, while core inflation is predicted to drop from 3.9% to 3.7%.
Driven by an increase in ETF inflows, Bitcoin, the biggest cryptocurrency by market value, is trading below $48,000 following its longest winning run since January 2023. After seven days of gains, the price of bitcoin dropped to $47,946 at the time of writing.
Regarding the future of the price of BTC, $50,000 is IntoTheBlock’s prediction for the cryptocurrency. But in order to get there, $48,491 remains a significant barrier level.
This is because approximately 270,000 BTC were purchased by over 800,000 addresses at an average cost of $48,491. As they break even on their position, these addresses’ current red status might put sell pressure on the price of bitcoin.
