One of the significant developments this week was the U.S. inflation data, which led to selling pressure on Bitcoin prices due to the heavy agenda. The data, which will indicate whether the Fed has been successful in battling inflation, was extremely critical. So much so, it had the potential to set the tone for the announcements to be made tomorrow.
The U.S. inflation data was released one hour before the opening of the U.S. stock markets. Inflation, which touched double digits but has been on a continuous decline, increased the appetite in risk markets. Specifically, the positive decline in previous data created expectations for more interest rate cuts next year.
After the strong employment data that came last Friday, the current state of inflation has become even more important. Additionally, excitement is still at its peak because, along with tomorrow’s Fed interest rate decision, the members’ 3-year interest rate expectations will also be revealed with a dot plot.
Expectations and announced figures on the inflation front were as follows: The annual announced inflation was 3.1% (Expectation: 3.1% Previous: 3.2%), and the annual core inflation announced was 4% (Expectation: 4% Previous: 4%).
The announced figures were favorable for cryptocurrencies, and as this article was being written, the price of Bitcoin was about to surpass $42,000.