Bitcoin and Ethereum prices break higher ahead of US Consumer Price Index (CPI) data for November. Bitcoin (BTC) price jumps one month higher after entering the range since FTX’s bankruptcy. Bitcoin price rose more than 3% from a low of $16,944 to a high of $17,424. The trading volume is up by almost 15%, indicating a limited participation of traders.
The price of Ethereum (ETH) was also up more than 2%, with a current price of USD 1,285. The 24-hour low and high are at $1,246 and $1,283 respectively. The ETH price has been moving within the range since last month. Trading volume is up 25% in the last 24 hours.
Wall Street Expectations Above US CPI Data
The US Bureau of Labor Statistics today releases US CPI data for November. Inflation is expected to slow for the fifth consecutive month to 7.3% in November, compared to 7.7% in October. In addition, Core CPI is expected to decline from 6.3% in October to 6.1% in November.
Wall Street expects CPI numbers to be lower as inflation cools. US stocks rose on Monday, with investors expecting softer inflation and a smaller rate hike from the Federal Reserve this week.
JPMorgan predicts a 10% stock rally if the US CPI comes out at 6.9% or lower. However, JPMorgan expects a CPI value between 7.2% and 7.4%. While the US stock market has shown less correlation with the crypto market in recent times, the lower CPI will benefit Bitcoin and Ethereum prices.
Goldman Sachs, Morgan Stanley, Credit Suisse, Barclays, Bloomberg, Jefferies, Citi, Wells Fargo and Nomura expect CPI data 7.2%. Meanwhile, BMO, CIBC, Gurvain Capital and TD Securities expect the CPI number at 7.3%. Therefore, CPI data may come in lower than the expected 7.3% for November.
Bitcoin Price And Fed 50 Bps Rate Hike
The CPI data will influence the Federal Reserve’s rate hike decision the following day. Fed Chair Jerome Powell previously pointed to a slowdown in the pace of interest rate hikes in December and the coming months.
According to the CME FedWatch Tool, the probability of a rate hike of 50 basis points is 72.3%. Wall Street also expects the Fed to stick with a 50 basis point rate hike in November.
Bitcoin and Ethereum prices will remain volatile this week. However, breaking the BTC price above the $17.3k level is important for a market bottom.
Also Read: Bitcoin Price Crash Ahead of US CPI and Fed Rate Hike?
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About the author
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.
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