It’s been a challenging week for cryptocurrency investors. The events occurring this week that have triggered a decline in Bitcoin prices are being evaluated. According to the article, the price of BTC is trading at the level of $42,335, and many altcoins have pulled back to support levels.
Weekly fundamental analysis indicators are signaling a downtrend in cryptocurrencies. Data received last Friday makes the upcoming Federal Reserve (Fed) meeting even more critical.
Investors are looking to enter the new week with less risk due to the November inflation data, new interest rate decisions, and long-term interest rate projections (dot plot) and it is noted that BTC has retreated to the $40,400 level.
The US inflation data is expected to be announced tomorrow, and the annual core Consumer Price Index (CPI) is projected to remain at 4%, with the main inflation rate staying steady at 3.2%. Additionally, the November Producer Price Index (PPI) data and the future of the dot plot and interest rate decision are indicated after Powell’s speech.
If Powell maintains a moderate stance, the inflation data turns out positive, and the three-year interest rate projections in the dot plot reflect a cut expectation, a target of $48,000 by December 31st could be reasonable. In the opposite case, BTC will likely aim for $36,000.